- Tech advisor M&A is rebounding in 2025 after a 2024 slowdown, with publicly disclosed platform deals slightly higher year over year but below 2022-23 peaks.
- Upstack continues as the most active consolidator, with its Breakwater Cloud Advisors acquisition extending CX and AI advisory depth.
- Bluewave is expanding both geography and capabilities via roll-up acquisitions in Utah, Florida and Colorado that add UCaaS/CCaaS, cloud, network and AI expertise.
- Easing interest rates and ample private credit are improving deal economics, while buyers increasingly favor advisory-plus-services specialists over pure transactional plays.
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The market for technology advisory (TA) M&A is exhibiting signs of recovery in 2025. After falling public deal counts among major roll-up firms in 2024, there are now indications that the decline is over: combined reported deals among Upstack, Bluewave, Bridgepointe, Amplix, and E78 in 2025 are marginally higher than in 2024 (22 vs. 20) when considering only publicly disclosed transactions.
Upstack remains the most aggressive acquirer, with its acquisition of Breakwater Cloud Advisors in October 2025 expanding its CX and AI capabilities and deepening in high-growth areas such as conversational AI, workforce & quality management, and analytics. This is a continuation of a strategy supported by private equity (Berkshire Partners), with at least three deals in 2025 already (Breakwater, Avail Partners, V3 Technology).
Bluewave, backed by Columbia Capital, is executing a geographically diversified strategy—not just service expansion. Acquisitions of Streamline Communications (Salt Lake City, Utah), TruPoint (Florida), and Technology Navigation (Colorado) highlight both a push into western U.S. markets and bolstering of UCaaS/CCaaS, cloud, network, and AI advisory capabilities.
Bridgepointe, E78, and Amplix have shown steadier deal counts, but fewer headline deals; their publicized acquisitions lag those of Upstack and Bluewave, especially in 2025.
Key economic headwinds include historically high interest rates, which peaked in mid-2023, making leveraged acquisitions more expensive and dampening valuations. Yet after rates began falling in August 2024, deal velocity started to improve. Coupled with a +100 basis point total cut in late 2024 in the U.S., there is more capital available (via private credit and public debt markets) and greater willingness on both sides to transact.
Strategically, buyers are gravitating toward advisory + services combinations—particularly in CX, security, cloud, and AI—over pure transactional or infrastructure acquisitions. Firms with vendor-agnostic advisory models, deep domain specialization, and ability to execute across lifecycle (assess → advise → implement) are favored.
Open questions include whether rate cuts will accelerate in 2025 sufficiently to sustain this rebound, whether valuations (especially for smaller tech advisors) will remain realistic in the context of rising discount rates, and whether buyer saturation or integration risk will slow subsequent waves of activity.
Supporting Notes
- Upstack announced acquisition of Breakwater Cloud Advisors (Vancouver, Washington) on October 9, 2025; the firm strengthens its CX + AI practice and brings in founders Brendan Paulin and Andrew Millard.
- Bluewave acquired Streamline Communications in Utah (Oct 2025), TruPoint Technology Solutions in Florida (June 2025), and Technology Navigation in Colorado (Nov 2025), expanding both geography and service specialization.
- According to a rough count by Channel Futures, public tech advisor acquisitions in 2025 by platforms Upstack, Bluewave, Bridgepointe, Amplix, and E78 totaled 22—slightly more than 2024’s 20—and still below peak years 2022-23.
- Interest rates tied to Federal Funds Effective Rate peaked at ~5.33% in Jan 2024, fell to ~4.33% by Jan 2025; this movement correlates with rising M&A activity among tech advisor consolidators.
- High interest rates raise cost of debt, dampen valuations, intensify due diligence, and squeeze returns, especially for transactions relying heavily on leveraged financing.
- Deal structures increasingly favor earn-outs, partial equity, or vendor stays, particularly for smaller advisors, as acquirers manage risk in uncertain macro environments.