Global M&A Trends and Risks Report unveiled by Mergermarket's platform
Global M&A Trends in 2025: Cautious Optimism and Strategic Shifts
In the dynamic world of business, the landscape of Mergers and Acquisitions (M&A) is evolving, presenting both opportunities and challenges for global dealmakers. A recent report by a leading global law firm highlights these trends, offering insights into the M&A activities expected in 2025.
The report, the third edition of the Global M&A trends and risks, reveals a mixed picture for the year ahead. While overall robustness is projected, growth may be slower than anticipated, with significant regional and sectoral disparities shaping the risks and opportunities for dealmaking worldwide.
Key Findings
The first half of 2025 saw a global deal value of approximately $1.1 trillion, a 2% decline from the preceding six months and below historical averages. The Americas, particularly the U.S., dominated with $724 billion in deals, up 23%, accounting for 62% of global deal value. Europe experienced a 14% decline to $201 billion, while Asia-Pacific saw a sharp 43% drop to $155 billion.
Industrials, energy, and health care sectors showed strong rebound, with growth of 62%, 54%, and 23% respectively, while materials and consumer sectors declined heavily, indicating a shifting sector focus and risk appetite.
Influential Factors
Market volatility, geopolitical tensions, and high interest rates have slowed deal momentum and increased uncertainty. Policy uncertainty and tariff questions have made dealmakers more cautious, though some view them as strategic opportunities to diversify or reshape operations.
Outlook and Implications
Despite challenges, M&A and capital markets remain resilient. Optimism exists around easing tariff tensions and interest rate adjustments, potentially accelerating deal activity in the latter half of 2025 and into 2026. Companies with deep value chain understanding are better positioned to pivot and leverage M&A to mitigate risks from geopolitical or economic shifts.
Implications for Dealmaking
The geographic focus is shifting, with the US and Americas markets remaining key but facing cooling effects. Europe and Asia-Pacific buyers are gaining relative ground, requiring global dealmakers to adjust geography-specific strategies. Sectoral prioritization may reduce risk and improve returns by focusing on resilient and growth sectors like industrials, energy, and health care. Navigating geopolitical conflicts, tariff policies, volatile interest rates, and macroeconomic uncertainty requires nuanced deal structuring and scenario planning. Deal agility, enabled by strong value chain insight and flexibility in strategy, enables companies to use M&A as a lever to adapt quickly in a complex global environment.
The report, based on a survey of 200 top-level executives, including 100 from multinational corporations, 50 from large private equity firms, and 50 from major investment banks, provides valuable insights into the M&A landscape of 2025. For more information, contact Dan McKenna, US Director and Global Head of PR and Communications, at Tel: 1 713 651 3576, or Louise Nelson, Head of PR for Europe, Middle East, and Asia, at Tel: 44 20 7444 5086 or Cell: 44 79 0968 4893. The global corporate, M&A, and securities team of our website offers legal advice on various M&A matters. The survey was conducted across Q1 and Q2 of this year.
Interestingly, 44 percent of survey participants expect domestic private equity buyers to be among the most active types of acquirers in deal markets in 2025. Moreover, 51 percent have already acquired an AI business, and 46 percent report that they are looking to acquire an AI business in the near term. Nearly 65 percent of respondents expect the use of representations and warranties insurance (RWI) to increase in 2025 compared to 2024.
In summary, 2025’s M&A landscape is characterized by cautious optimism, regional realignments, sector-specific recoveries, and heightened risks from macroeconomic and geopolitical uncertainty, demanding strategic agility and thoughtful deal execution from global dealmakers.
- The report reveals that the use of technology, such as AI, will play a significant role in M&A activities in 2025, as 51% of survey participants have already acquired an AI business, and 46% report looking to acquire one in the near term.
- In the global M&A landscape of 2025, finance plays a crucial role in strategic decision-making, as evidenced by the expectation that 44% of domestic private equity buyers will be amongst the most active acquirers, and the anticipated increase in the use of representations and warranties insurance (RWI) by nearly 65% compared to 2024.
