Global M&A Trends and Risks Report unveiled by Mergermarket's website
In the ever-evolving world of corporate dealings, understanding the trends and risks that shape global M&A activity is crucial. A recent report, the third edition of the Global M&A Trends and Risks, jointly published by a leading global law firm and Mergermarket, offers valuable insights into the dealmaking landscape of 2025.
Key Trends
The report highlights several key trends that are shaping global M&A dealmaking. Regional variations in activity are evident, with the Americas, particularly North America, continuing to lead in deal value. However, Europe and Asia-Pacific show mixed performance, with Asia-Pacific facing geopolitical tensions that affect deal flow.
Sectoral shifts are also notable, with certain sectors like industrials, energy, and health care experiencing rebounds in deal value, while materials and consumer sectors experience declines. The report also notes a trend of fewer transformational or large-scale deals, resulting in a decline in deal value in some regions.
Risks Influencing Dealmaking
Persistent geopolitical tensions, macroeconomic volatility, and regulatory and policy volatility continue to pose risks to dealmaking. These factors lead to deal postponements, cautious investor sentiment, and a focus on more nuanced and creative deal strategies.
Outlook and Deal Strategy Insights
Despite these headwinds, confident dealmakers are pursuing M&A with creativity, conviction, and strategic timing to capitalise on premium valuations and growth opportunities. Optimism is growing around potential resolutions of US tariff issues and improving economic outlooks, which could accelerate activity in the second half of 2025 and into 2026, especially in EMEA and North America.
The Expert Advice
Our global corporate, M&A, and securities team provides legal advice on a wide range of 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.
Survey Findings
The report includes findings from a survey of 200 top-level executives from multinational corporations, large private equity firms, and major investment banks. The survey suggests a shift towards more deliberate and strategic planning in M&A, with factors like trade tensions, financing pressures, and regulatory scrutiny influencing how deals are structured and executed.
Key Findings
- 53% of respondents expected their organization's appetite for M&A to increase in 2025 compared to last year, but market turmoil caused by "reciprocal tariff" announcements decreased their appetite for M&A.
- 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.
- 51% of respondents have acquired an AI business, and 46% plan to acquire one in the near future.
- 65% of respondents expect the use of representations and warranties insurance (RWI) to increase in 2025 compared to 2024, particularly in the Middle East and South and Southeast Asia.
- 35% of respondents expect it to become more difficult to secure M&A-related financing in 2025 compared with 2024, and private credit is expected to be the single most important form of financing for M&A deals in some regions.
Contact Details
For more information, please contact Dan McKenna, the US Director and Global Head of PR and Communications, at Tel: 1 713 651 3576, or Louise Nelson, the Head of PR for Europe, Middle East, and Asia, at Tel: 44 20 7444 5086, Cell: 44 79 0968 4893.
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In the global M&A landscape of 2025, business leaders are showing an increased appetite for mergers and acquisitions, with 53% expecting their organization's M&A activity to increase, according to a survey in the Global M&A Trends and Risks report. Simultaneously, there's a growing trend for companies to incorporate technology, particularly artificial intelligence (AI), with 51% having already acquired an AI business and 46% planning future acquisitions.
