Dan Sarver, Managing Director, Confluence Advisors
In an interview with Invest:, Dan Sarver, managing director of Confluence Advisors, discussed the growing positive sentiment in the mergers and acquisitions market, as well as the firm’s plan to grow with junior talent. “We think the mergers and acquisitions market is going to pick up in the fourth quarter, and into next year,” Sarver said.
What recent market conditions have impacted Confluence Advisors?
Confluence Advisors focuses on two core services: representing companies in sale transactions and raising capital. Over the past year, the M&A market has softened due to uncertainty surrounding tariffs, taxes, and higher interest rates. These factors have caused many private equity sponsors to hold assets longer, limiting both fundraising and deal activity. At the same time, U.S. manufacturing is showing signs of contraction, adding further caution.
When uncertainty is high, buyers often hesitate as they struggle to underwrite future performance, which results in more conservative offers, lower valuations, heavier reliance on earnouts, or in some cases, walking away from a deal entirely. These dynamics have contributed to fewer completed transactions.
On a positive note, several headwinds are easing. Recent tax legislation has created greater certainty, interest rates have moderated, and tariff risks are more clearly defined. With those improvements, we expect M&A activity to gain momentum, particularly as we move into 2026.
Which industries are most active within the Pittsburgh market now?
Several non-discretionary service industries are seeing heightened activity particularly business, professional, and industrial services. One fast-growing area is residential (“resi”) services, ranging from HVAC and roofing to landscaping, disaster restoration, and home maintenance. These are stable, needs-based businesses that attract consistent investor interest.
Beyond services, infrastructure, safety, aerospace, and data center-related industries are also strong. Data centers require enormous amounts of power, and in our region, former power plants are being converted to meet that demand and creating a compelling investment theme.
What challenges do you see when Western Pennsylvania businesses owners think about succession?
Many baby boomer owners are entering retirement or stepping back from daily operations. For these business owners, succession often means selling the company to achieve liquidity, manage estate planning, or transition into their next chapter.
The challenge is that most owners underestimate how much preparation is required. Positioning a company for sale, maximizing value, highlighting growth opportunities, and structuring a smooth transition takes time. Starting early is key.
Another concern we frequently hear is “stewardship”. Owners care deeply about employees, customers, and suppliers. They want confidence that the next owner will be a good fit, even though they know new leadership will bring different priorities and ways of operating. Engaging professional advisors helps business owners expand their buyer universe and ultimately choose the right partner for their legacy.
Why should a business owner consider hiring an investment bank when selling their business?
Selling a business is often the most significant financial event of an owner’s life. Maximizing value and fit requires more than just finding a buyer, it requires creating a competitive process. An investment bank brings the expertise, relationships, and process to make that happen.
The reality is that while many buyers may express interest, only a handful will be serious and capable of paying a market-clearing valuation. Sifting through inquiries, managing diligence, negotiating terms, and positioning the company as a “must-have” opportunity takes time and specialized skill.
By running a structured, competitive process, we ensure business owners not only receive the optimal outcome but also maintain control and options throughout the transaction. It’s about protecting the value they’ve built over decades and delivering a result that meets both financial and personal goals.
What skills are you prioritizing when hiring and developing junior talent?
We look for candidates with strong foundations in accounting and finance, including financial modeling, statement analysis, and industry research. Technical fluency in Excel, PowerPoint, and AI prompting is essential.
Communication skills are equally critical because we regularly interact with business owners and professionals. We value people who can explain complex analysis clearly, build trust, and represent Confluence with professionalism.
Given our deep roots in Western Pennsylvania, we look for individuals who want to live and grow their careers here. That sense of connection to the region strengthens our ability to serve local business owners.
How does the firm give back to the community in Pittsburgh?
Confluence is deeply tied to the Pittsburgh region. Our members have served on boards of local nonprofits and professional associations, including the Association for Corporate Growth and the Exit Planning Institute. We also contribute to regional charities and actively participate in professional networks across law, accounting, and wealth management.
This involvement keeps us closely connected to the business community and allows us to give back to the region.
What are your top priorities for the next few years?
We’re expanding our team, particularly at the junior level, to meet rising demand. We’re also actively pitching new opportunities and expect several transactions to close early next year.
We believe deal activity will strengthen in late 2025 and into 2026, creating an attractive environment for business owners considering a sale. By growing our team and capacity now, we’re positioning Confluence to serve more clients and deliver outstanding outcomes as the market improves.
