Phoenix, AZ, January 13, 2026
The Greater Phoenix area showcases strong economic health, highlighted by key business transactions, including the acquisition of the Museum of Illusions in Scottsdale. This acquisition reflects investors’ confidence in the region and is part of a trend of mergers and acquisitions in Arizona. The vibrant business ecosystem is fostering growth, innovation, and job creation, establishing Phoenix as a favorable environment for entrepreneurs.
Phoenix, AZ: Innovative Deals Drive Local Economic Vibrancy
The Greater Phoenix area continues to demonstrate its robust economic health, underscored by significant business transactions and a thriving entrepreneurial spirit. The latest news sees the Scottsdale-based Museum of Illusions change ownership, a move reflecting broader investment confidence in the region’s dynamic market. This acquisition, alongside a continuous stream of mergers and acquisitions (M&A) across the Valley, highlights an environment where private investment and strategic business decisions are key drivers of growth and opportunity for Arizona AZ entrepreneurs.
These transactions are often indicators of a healthy business ecosystem, where companies are empowered to innovate, expand, and contribute to the local economy. The confidence shown by investors in local enterprises points to the effectiveness of a supportive business climate and the resilience of Phoenix AZ business models, which, in turn, fosters job creation and strengthens community prosperity through entrepreneurial innovation.
Scottsdale’s Museum of Illusions Joins Global Portfolio
The globally recognized Museum of Illusions Group, which operates nearly 70 locations across 27 countries, has been acquired by an investor group. The acquisition was led by Brightwood Capital Advisors, LLC, a New York-based investment firm. Constitution Capital Partners served as the lead co-investor in this significant transaction. The previous owner of the Museum of Illusions was Invera Capital Partners, based in Zagreb, Croatia.
A notable outcome of this change in ownership is the transition of five previously franchised locations, including the Scottsdale venue, to become corporate-owned operations. Other locations making this shift are in Boston, Chicago, Pittsburgh, and Philadelphia. The existing leadership team for the Museum of Illusions, under the guidance of CEO Kim Schaefer, is set to continue leading the company into its next phase of global expansion.
Brightwood’s investment is strategically aimed at accelerating the Museum of Illusions’ global growth. Plans for 2026 include entering new markets such as Sacramento, Miami, San Francisco, London, and Birmingham. This investment will also support increased spending on infrastructure, brand development, and marketing efforts. The Museum of Illusions will maintain its current concept and brand positioning, focusing on interactive, educational exhibits that blend learning and entertainment.
The Museum of Illusions in Scottsdale, specifically, commenced operations on March 11, 2023, and is situated within the Arizona Boardwalk. It is a vibrant attraction, sharing its location with the OdySea Aquarium and Butterfly Wonderland. The Scottsdale venue offers 60 diverse exhibits, including holograms, stereograms, and various optical illusions, providing visitors with immersive experiences that explore vision, perception, and the human brain.
Phoenix’s Entrepreneurial Momentum and Small Business Success
The broader economic landscape in Phoenix and across Arizona continues to present a compelling narrative of growth and opportunity. Arizona has been recognized as a highly favorable state for entrepreneurs, achieving the 14th position nationally in 2025 according to a study by SimplifyLLC. This marks a substantial improvement, moving up 11 spots from its 2024 ranking.
The state’s rise in these rankings is attributed to several critical factors, including its national ranking of 8th for new business growth, 4th for job creation rate, and 26th for consumer spending. Arizona’s business-friendly policies, coupled with affordable living and operating costs, and streamlined regulations, create an environment conducive to starting and expanding businesses. In 2024 alone, the Arizona Corporations Division processed a remarkable 212,547 filings, which included the formation of 10,504 new corporations and 118,015 new limited liability companies (LLCs). The USA TODAY study further highlights Arizona’s affordability, ranking it as the third most affordable state for living and business operations, noting inexpensive filing fees, such as a $50 one-time LLC filing fee with no annual fee.
Phoenix small business owners are showing particular strength, outperforming national averages in several key metrics. A U.S. Bank survey from September 2024 revealed that 94% of Phoenix small business owners consider their businesses successful, compared to 90% nationally. Furthermore, 89% reported business growth in the past year, significantly higher than the national average of 73%. Optimism for the future is also strong, with 93% of Phoenix owners expressing confidence, compared to 87% nationwide.
Strategic Investments Fueling State-Level Growth
Arizona experienced a transformative year in 2025, marked by record-breaking economic growth. The Arizona Commerce Authority, in collaboration with its economic partners, successfully secured 90 competitive projects, leading to over $34 billion in new investment and the projection of nearly 28,000 new jobs. These economic expansions spanned numerous communities across the state, including key areas like Phoenix and Scottsdale.
The state has solidified its position as a hub for advanced manufacturing, particularly in the semiconductor industry. Since 2020, Arizona has attracted more than 60 industry expansions in this sector, representing over $210 billion in announced investment and anticipating more than 25,000 new jobs. This robust activity earned Arizona the top national ranking for semiconductors in Business Facilities’ 2025 State Rankings Report.
Beyond manufacturing, Arizona’s economic momentum extends across several trending industries in 2025, including construction, health services, and technology. These sectors collectively contribute to the diverse and thriving economic landscape of the state, offering varied opportunities for Phoenix AZ business development and investment.
Understanding the Impact of Mergers and Acquisitions
Mergers and acquisitions, such as the Museum of Illusions deal, are integral components of a dynamic economy. These transactions serve to strengthen the overall economic fabric by fostering improved products and services, while also driving beneficial efficiencies across industries. They empower entrepreneurship and, when executed thoughtfully, can stimulate competition.
From an economic standpoint, M&As can lead to significant advantages, including the achievement of economies of scale, which reduce per-unit production costs through increased output. They can also generate synergies, creating cost savings from combined operations, increased market share, or access to complementary resources. Such strategic alignments can catalyze growth by enabling firms to enter new markets, adopt advanced technologies, and acquire new skills, fostering overall economic development.
While M&As largely contribute positively, it is important to acknowledge potential challenges. These can include increased market concentration, which may reduce competition, or the possibility of job insecurity if cost-cutting measures lead to layoffs. However, the strategic deployment of capital, exemplified by the recent Phoenix-based M&A conference in November 2025, which gathered lower middle market advisors and investors, demonstrates a proactive approach to optimizing deal structures and fostering innovation within the market.
A Future Forged in Enterprise
The recent acquisition of the Scottsdale-based Museum of Illusions, alongside the continuous stream of positive economic indicators and M&A activity across the Valley, underscores a resilient and growth-oriented future for the Phoenix metropolitan area. The commitment of investors, the innovation of local businesses, and a supportive regulatory environment all contribute to a powerful engine of economic expansion. As Arizona AZ entrepreneurs continue to push boundaries and Phoenix small business owners achieve remarkable success, the region is poised for sustained prosperity. We encourage all our readers to actively support local businesses and remain engaged in the unfolding success story of Phoenix’s economic future.
Frequently Asked Questions about Phoenix M&A and Economic Growth
What investor group acquired the Museum of Illusions Group?
The Museum of Illusions Group was acquired by an investor group led by Brightwood Capital Advisors, LLC, a New York-based investment firm. Constitution Capital Partners served as the lead co-investor.
Which Museum of Illusions locations became corporate-owned as part of the transaction?
As part of the transaction, five previously franchised locations, including Scottsdale, Boston, Chicago, Pittsburgh, and Philadelphia, transitioned to become corporate-owned venues.
When did the Museum of Illusions Scottsdale open?
The Museum of Illusions Scottsdale opened on March 11, 2023.
How does Arizona rank nationally for entrepreneurs in 2025?
Arizona ranks as the 14th best state for entrepreneurs in 2025, according to a study by SimplifyLLC, which is an 11-spot jump from its 2024 ranking.
What are the key factors contributing to Arizona’s improved ranking for entrepreneurs?
Key factors contributing to Arizona’s improved ranking include its national ranking of 8th for new business growth, 4th for job creation rate, and 26th for consumer spending.
How affordable is Arizona for living and operating a business?
Arizona is ranked as the third most affordable state to live and operate a business in by USA TODAY, featuring inexpensive filing fees, such as a $50 one-time LLC filing fee with no annual fee.
How do Phoenix small business owners’ success rates compare to the national average?
A September 2024 U.S. Bank survey indicates that 94% of Phoenix small business owners report their business is successful (compared to 90% nationally), 89% reported business growth in the past year (compared to 73% nationally), and 93% are optimistic for the future (compared to 87% nationally).
What was the total new investment and projected new jobs in Arizona during 2025?
Arizona saw over $34 billion in new investment and nearly 28,000 projected new jobs from 90 competitive projects in 2025.
Which industries are trending in Arizona for 2025?
Trending industries in Arizona for 2025 include construction, health services, manufacturing, semiconductors, and technology.
What are some potential economic benefits of mergers and acquisitions?
Mergers and acquisitions can lead to economies of scale, synergies, complementary resources, and catalyzing growth by enabling firms to enter new markets, adopt advanced technologies, and acquire new skills, fostering overall economic development.
Key Features of Phoenix’s Economic Landscape and Recent M&A Activity
| Feature | Description | Geographic Scope |
|---|---|---|
| Museum of Illusions Acquisition | Acquired by an investor group led by Brightwood Capital Advisors, LLC, with Constitution Capital Partners as lead co-investor. Scottsdale location transitions to corporate-owned. | State-level (Scottsdale), Nationwide (US locations), Global (Museum of Illusions Group) |
| Arizona Entrepreneur Ranking (2025) | Ranked 14th best state for entrepreneurs by SimplifyLLC, an 11-spot jump from 2024. | State-level |
| Key Factors for Arizona’s Entrepreneurial Growth | Ranked 8th nationally for new business growth, 4th for job creation rate, and 26th for consumer spending. | Nationwide (rankings relative to other states) |
| Arizona Business Formation (2024) | 212,547 filings processed by Arizona Corporations Division, including 10,504 new corporations and 118,015 new LLCs. | State-level |
| Arizona Affordability Ranking | Ranked 3rd most affordable state to live and operate a business by USA TODAY. | Nationwide (ranking relative to other states) |
| Phoenix Small Business Success (Sept 2024) | 94% successful, 89% grown in past year, 93% optimistic for future (outperforming national averages). | Local (Phoenix) |
| Arizona New Investment & Jobs (2025) | Over $34 billion in new investment and nearly 28,000 projected new jobs from 90 competitive projects. | State-level |
| Arizona Semiconductor Industry | Over 60 industry expansions since 2020, representing over $210 billion in announced investment and over 25,000 projected new jobs. Ranked No. 1 nationally in 2025 by Business Facilities. | State-level (Arizona sector), Nationwide (ranking relative to other states) |
| Trending Industries in Arizona (2025) | Construction, health services, manufacturing, semiconductors, and technology. | State-level |
| Economic Benefits of M&A | Economies of scale, synergies, complementary resources, and catalyzing growth through new markets and technologies. | Nationwide |
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Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
