Global M&A Trends and Risks Report unveiled by Mergermarket's website
Global M&A Trends and Risks in 2025: Cautious Optimism and Mounting Challenges
The latest Global M&A Trends and Risks report, a joint effort by a major law firm and Mergermarket, sheds light on the evolving landscape of mergers and acquisitions (M&A) in 2025. The report, based on a survey of 200 top-level executives across Q1 and Q2 of 2025, offers insights into key trends and risks shaping global M&A activity.
Resilience and Optimism Amid Uncertainty
Despite macroeconomic, geopolitical, and policy volatility, global M&A has shown resilience. Business confidence is boosted by hopes of resolving key issues like US tariff policies, leading to robust deal volumes and improved optimism for deal activity in the latter half of 2025.
Regional Variations
M&A deal activity increased strongly in EMEA regions, with a growth of approximately 11% year-on-year. Asian markets have shown moderate increases in disclosed deals and deal value, driven by large transactions.
Deal Types and Focus
There is a selective approach towards acquisitions, with an emphasis on smaller bolt-on deals, organic investments, and share buybacks, particularly in insurance and financial services sectors. Cross-border deals have been less frequent, with a focus on domestic or regional consolidation.
Sector-Specific Activity
Financial services M&A activity rose, with deal values increasing significantly due to several large deals exceeding $1 billion. However, insurance sector deals slipped slightly in volume, influenced by carrier caution amid geopolitical and economic uncertainties.
Key Risks Highlighted for 2025
The report highlights several risks that M&A participants must navigate thoughtfully. Persistent geopolitical tensions, inflationary pressures, regulatory and policy uncertainty, and emerging non-financial risks like climate volatility, cyber threats, and infrastructure vulnerabilities add layers of complexity to M&A transactions.
Private Credit and Regional Market Trends
Private credit is expected to be the single most important form of financing for M&A deals in Africa, the Middle East, and Southeast Asia. Domestic strategic buyers are expected to be the most active acquirers in 2025, particularly in emerging markets like Latin America, Africa, and South and Southeast Asia.
Use of Representations and Warranties Insurance (RWI)
Nearly 65% of respondents expect the use of RWI to increase in 2025 compared to 2024.
AI in M&A
The report reveals that 46% report that they are looking to acquire an AI business in the near term. Fifty-one percent of respondents have acquired an AI business and are applying the technology to various parts of their M&A processes.
Contact Details
For more information, contact Dan McKenna, the US Director and Global Head of PR and Communications for the law firm, at 1 713 651 3576, or Louise Nelson, the Head of PR for Europe, Middle East, and Asia for the law firm, at 44 20 7444 5086 (work) or 44 79 0968 4893 (mobile).
The global corporate, M&A, and securities team of the law firm advises on a wide range of legal matters, including public transactions, take-privates, strategic review processes, joint ventures, carveout dispositions and acquisitions, debt and equity capital markets transactions, governance, compliance, general commercial, and corporate advisory matters.
The law firm, with over 450 M&A partners and 700 other deal lawyers worldwide, provides legal advice on some of the most high-profile, complex, and significant transactions in the market.
In the context of the Global M&A Trends and Risks report for 2025, there is a focus on the financial services sector, with an increase in M&A activity and significant deal values due to large transactions (finance). The use of technology is also prominent, as 46% of respondents are looking to acquire an AI business in the near term to improve their M&A processes (technology). Businesses in Asia and EMEA regions have shown increased M&A deal activity, with Asian markets driven by large transactions and EMEA regions experiencing a growth of approximately 11% year-on-year (business).
