Mergermarket's new release: Global Mergers and Acquisitions Trends and Risks Analysis Report available now.
In the dynamic world of mergers and acquisitions (M&A), the year 2025 is shaping up to be a period of cautious optimism, regional disparities, and significant geopolitical and macroeconomic risks. According to the third edition of the Global M&A Trends and Risks report, released by our website in collaboration with Mergermarket, this prevailing environment demands nuanced, strategic dealmaking focused on value creation amid persistent uncertainties.
Key Trends
One of the notable trends in 2025 is the resilience of M&A activity amid volatility. Despite macroeconomic, geopolitical, and policy uncertainties, companies with consistent profitable growth continue to attract premium valuations, spurring dealmaking with creativity and conviction.
Optimism around the resolution of US tariff policies and easing geopolitical tensions—particularly in regions like EMEA and North America—is improving business confidence and deal volumes. Regional deal activity variations are also evident, with EMEA experiencing an 11% year-on-year M&A volume increase, driven by improving economic outlooks and falling interest rates.
Many companies are prioritizing deals that drive revenue growth and cost optimization, with increasing interest in bolt-on acquisitions and organic growth projects rather than large-scale cross-border transactions, especially in the insurance sector.
Key Risks
However, these trends are not without risks. Ongoing conflicts such as the Russia-Ukraine war, tariff deadlines, and Middle East tensions create unpredictable risks affecting pricing, supply chains, and global trade dynamics. Persistent inflationary concerns and high interest rates impact valuations and deal appetite.
High valuations, particularly in insurance and financial services sectors, are leading to greater caution among buyers, influencing deal size and structure. Despite pockets of optimism, uncertainty from macroeconomic turbulence and regulatory environments continues to temper large cross-border and multi-sector M&A deals.
Domestic Buyers Leading the Way
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. Forty-four percent of survey participants expect domestic private equity buyers to be among the most active types of acquirers in deal markets.
Nearly 65% of respondents expect the use of representations and warranties insurance (RWI) to increase in 2025 compared to 2024, with more than 45% of respondents in the Middle East and South and Southeast Asia forecasting a significant increase.
Expert Advice
Our global corporate, M&A, and securities team provides legal advice on a wide range of matters, including public transactions, strategic review processes, joint ventures, and acquisitions. The team's expertise spans across public transactions, take-privates, carveout dispositions, debt and equity capital markets transactions, governance, compliance, general commercial, and corporate advisory matters.
Raj Karia, Global Head of Corporate, M&A and Securities for our website, stated that the report captures a shift in how clients approach M&A, with a move towards more deliberate and strategic planning.
Financing Challenges
Thirty-five percent of respondents expect it to become more difficult to secure M&A-related financing in 2025 compared with 2024. A quarter of respondents believe private credit will be the single most important form of financing to be employed in the market over the next two years for M&A deals.
AI and Private Credit
In the tech sector, fifty-one percent of respondents have acquired an AI business, and 46% report that they are looking to acquire an AI business in the near term.
Contact Information
For more information, please contact Louise Nelson, Head of PR for Europe, Middle East, and Asia, at Tel: 44 20 7444 5086, Cell: 44 79 0968 4893. In the US, Dan McKenna, US Director and Global Head of PR and Communications, can be reached at Tel: 1 713 651 3576.
This team includes more than 450 M&A partners and 700 other deal lawyers worldwide, advising on some of the most high-profile, complex, and significant transactions in the market.
- In the tech sector, companies are increasingly looking to acquire AI businesses, with 51% having already made such acquisitions, and 46% planning to do so in the near future, showcasing the essential role technology plays in modern business investing.
- Given the prevailing economic climate of volatility and uncertain policies, securing M&A-related financing is becoming increasingly challenging for some, with 35% of respondents expecting it to be more difficult in 2025 compared to 2024, indicating the need for inventive financial strategies in the business world.
