Lincoln International (LCLN) investor relations material

Market outlook and deal activity

• Strategic buyers remain active, especially in sectors where high valuations and low-to-mid-single-digit organic growth increase pressure to acquire growth. Stable policy and geopolitical conditions could support transaction activity.

• A divided government may provide greater stability; more regulation and transparency could benefit portfolio valuation work, while anticipated capital-gains tax increases have historically pulled deals forward.

• Industrials and business services have been the most active sectors coming out of the M&A downturn; transportation and logistics, specialty distribution, commercial and blue-collar services, and food are also picking up.

• Deal activity is recovering gradually, not as a wave: sellers show more conviction and buyers are more willing to address diligence issues through price and structure.

• Sponsor activity is uneven: firms aiming to raise funds are moving faster to return capital, while others may defer exits; continuation vehicles, recapitalizations, and refinancings offer alternatives.

Growth strategy and acquisition integration

• Culture is a central growth driver: culture is defined, measured globally, and managed through local action plans to attract and retain talent over the long term.

• Growth balances internal MD promotions, lateral hiring, higher productivity, and acquisitions; revenue per MD and per employee have increased, supported by talent and platform investment.

• Collaboration is reinforced through shared events and incentives: half of revenue-generators’ compensation is revenue-based and half discretionary, with peer reviews among the KPIs.

• MarshBerry, acquired one year earlier, is expanding into private-equity relationships and Europe; integration is progressing through a detailed, staged plan, and the deal has accelerated MD recruiting.

• Financial services is a platform expansion priority; insurance and wealth management are established, while energy—including project finance—was identified as a major potential white-space area for acquisitions.

Talent and capacity

• A major MD hiring initiative began near the perceived M&A-market bottom at end-2023; the most MDs ever were hired in a two-year period across regions, products, and industry groups in 2024–2025, meeting ~75% of identified needs.

• MD hiring continues at a slower pace as competition rises and many candidates have already moved; a typical ramp to full stride is 2–3 years.

• Among the 2024–2026 MD cohort, ~20% are ahead of schedule, ~20% are behind or have departed, and ~60% are in the middle; the cohort accounts for nearly 20% of backlog.