by After several relatively quiet years, merger and acquisition momentum in the home furnishings industry is clearly rebuilding. Over the past month alone, a series of notable announcements suggests that both buyers and sellers are gaining confidence that market conditions have stabilized and that the next phase of the cycle is under way.
Recent activity includes:
+ Hooker Furnishings’ divestiture of Pulaski and Samuel Lawrence to Magnussen
+ Man Wah’s acquisition of Southern Motion
+ Bain Capital’s planned IPO of Bob’s Discount Furniture
+ La-Z-Boy’s announced plans to exit legacy wholesale brands Kincaid and American Drew
+ Somnigroup’s pursuit of an acquisition of Leggett & Platt
This pickup mirrors broader global M&A trends. According to PitchBook’s 2025 Annual Global M&A Report, total deal value and transaction volume both rose meaningfully in 2025, reaching their highest levels since the 2021 peak — a clear sign that buyers are reengaging across industries.
Improving fundamentals
While the housing recovery has taken longer than many initially expected, fundamentals are moving in a more constructive direction. Easing mortgage rates should support increased home buying over time — a key demand driver for furnishings. In addition, recent news surrounding the nomination of a new Federal Reserve chair has reinforced expectations for a more accommodative policy stance over time, increasing confidence that interest rates will trend lower in the coming years. Together, these dynamics are improving credit conditions, lowering the cost of capital and enhancing deal economics for buyers.
Public-market signals are also turning more positive. In its IPO filing, Bain Capital-backed Bob’s Discount Furniture pointed to improving housing turnover, significant pent-up demand from historically low transaction levels, and easing affordability pressures as catalysts for a broader rebound in home furnishings demand.
Industry demand is beginning to reflect that optimism. U.S. Census data for Furniture & Home Furnishings Stores indicates full-year 2025 sales of approximately $137 billion, up roughly 4% versus 2024 — modest growth, but an important step forward after several challenging years.
A growing pool of motivated sellers
Seller motivations have broadened and become more pronounced across the industry:
+ Portfolio optimization and strategic focus. Larger manufacturers and retailers are divesting non-core or legacy brands to simplify operations and redeploy capital.
+ Private equity liquidity needs. Many sponsors continue to hold assets acquired well before Covid and are increasingly seeking exits.
+ Ownership transitions. Founder- and family-owned businesses are evaluating succession and retirement decisions after navigating several volatile years.
More buyers — and deeper buyer benches — than in recent years
The buyer universe today is broader and more active than it has been in several years.
Strategic buyers are playing a leading role. PitchBook reports that corporate M&A involving strategic acquirers totaled $2.73 trillion in 2025, representing nearly 60% of total global deal value, as companies moved to protect margins, maintain competitive positioning and adapt to industry shifts.
Private equity buyers also remain well capitalized. With substantial dry powder still available and valuation expectations resetting, financial sponsors are re-entering the market across both platform and add-on transactions — increasing competition for high-quality assets.
Valuation expectations are realigning
For many companies, peak earnings occurred in 2021 or 2022. After downturns in 2023 through parts of 2025, buyers and sellers are now underwriting transactions based on normalized earnings and current market conditions rather than peak-cycle results.
Importantly, many businesses remain larger and more profitable than they were in pre-Covid years such as 2018 and 2019.
Looking ahead
With improving fundamentals, motivated sellers and a deeper, more competitive buyer universe, conditions are in place for continued M&A momentum. Multiple transactions are currently under letter of intent, with additional processes expected to launch as the year progresses.
Bo Stump is a partner at Charlotte, North Carolina-based merger and acquisition specialist Stump & Co.
