Global M&A Trends and Risks Report unveiled by Mergermarket's website
The third edition of the Global M&A Trends and Risks report, a joint publication by our website and Mergermarket, has shed light on the key trends and risks shaping the mergers and acquisitions (M&A) landscape in 2025.
Key Trends
Resilience and Stability
Despite macroeconomic, geopolitical, and policy volatility, global M&A activity has shown resilience, with volumes remaining stable or showing moderate growth in many regions in the first half of 2025.
Regional Shifts
European and Asia-Pacific buyers are leading global M&A, outperforming U.S. dealmakers whose activity has cooled, indicating a geographic shift in dealmaking momentum.
Deal Size and Focus
There is an increase in large deals (over $1 billion), often accompanied by a rise in value-oriented, resilience-focused acquisitions amid ongoing volatility.
Sectoral Variation
The financial services and insurance sectors have experienced mixed results—insurance M&A deals have fallen in H1 2025, influenced by carrier caution and geopolitical uncertainty, whereas financial services deals have increased, supported by strategic acquisitions and cost optimization efforts.
Optimism Linked to Policy Prospects
Improved confidence is linked to expectations of tariff policy resolutions, which are expected to support acceleration in M&A activity in the latter half of 2025 and into 2026.
Key Risks
Geopolitical and Economic Uncertainty
Ongoing geopolitical tensions, inflationary pressures, and economic turbulence create caution among dealmakers and impact cross-border dealmaking, particularly in insurance and some regional markets.
High Valuations and Interest Rates
Elevated valuations and interest rates are causing dealmakers to be selective, focusing on smaller bolt-on acquisitions and organic growth rather than large-scale deals in some sectors.
Regulatory and Tariff Policy Risks
Uncertainties around U.S. tariff policies and broader regulatory environments pose risks. However, better-prepared companies might find opportunities even amid policy shifts.
Shift Towards Strategic Planning
Raj Karia, Global Head of Corporate, M&A and Securities, stated that there is a clear shift towards more deliberate and strategic planning in M&A.
Financing Trends
Private credit is expected to be the single most important form of financing for M&A deals in the next two years, particularly in Africa, the Middle East, and Southeast Asia. Additionally, 65% of respondents expect the use of representations and warranties insurance (RWI) to increase in 2025 compared to 2024.
Active Acquirers
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. Furthermore, 44% of survey participants expect domestic private equity buyers to be among the most active types of acquirers in deal markets in 2025.
In summary, the 2025 M&A market is characterized by resilient, albeit cautious, dealmaking with a geographic and sectoral shift toward Europe and Asia-Pacific. Risks include geopolitical uncertainty, valuation pressures, and regulatory challenges, which require nuanced, creative deal strategies.
Expert Advice
More than 450 M&A partners and 700 other deal lawyers worldwide advise on some of the most high-profile, complex, and significant transactions in the market. The global corporate, M&A and securities team of our website 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.
For further information, Dan McKenna, the US Director and Global Head of PR and Communications for our website, can be reached at 1 713 651 3576. In Europe, Middle East, and Asia, Louise Nelson, the Head of PR, can be reached at 44 20 7444 5086 or 44 79 0968 4893.
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- The resurgence of private credit as the primary financing method for M&A deals indicates a shift in the finance landscape, particularly in Africa, the Middle East, and Southeast Asia.
- As strategic planning becomes more prevalent in M&A, global technology solutions could potentially play a significant role in optimizing deal processes and mitigating risks, especially in managing data, compliance, and competition analysis.
