New Report on Global Mergers and Acquisitions Trends and Potential Risks by Mergermarket's Website
The Global M&A Trends and Risks report for 2025, released by a leading global law firm in collaboration with Mergermarket, has shed light on the key trends and risks shaping the global mergers and acquisitions landscape this year.
Key Trends:
- Resilient dealmaking despite macroeconomic and geopolitical volatility: Companies pursuit of consistent, profitable growth continues to drive M&A activity, with premium valuations encouraging deal-making.
- Increasing optimism in US tariff resolutions has resulted in robust deal volumes in the first half of 2025, and favorable conditions for further acceleration during the rest of the year.
- Regional variations: EMEA M&A volumes increased about 11% year-on-year, while Asian and Oceanian markets saw a 6% rise in deal numbers.
- Selective and cautious deal-making in certain sectors: In insurance M&A, global deal numbers declined, reflecting caution due to geopolitical uncertainty, inflation, and high valuations.
- Cross-border deals remain constrained: Most activity focused on domestic markets, with limited cross-border transactions.
Key Risks:
- Geopolitical and systemic risks such as tariff deadlines, ongoing Russia-Ukraine conflict, and Middle East tensions contribute to uncertainty affecting supply chains, pricing, and trade dynamics.
- Macro-economic turbulence: Inflationary pressures, inflation persistence, and interest rate fluctuations create an environment of financial uncertainty impacting valuations and financing conditions.
- High valuations restraining deals: Elevated asset prices and cautious capital deployment have led to fewer large transactions and more selective acquisitions.
- Sector-specific risks: For the insurance market, digital disruption, climate volatility, and cyber risks add complexity to underwriting and risk management.
Overall, the outlook for 2025 M&A activity reflects a cautious optimism supported by improving economic conditions and tariff resolution prospects, tempered by the need for nuanced risk navigation due to continuing geopolitical, economic, and sector-specific uncertainties.
The report also reveals a shift towards more deliberate and strategic planning in M&A, with 53% of respondents expecting their organization's appetite for M&A to increase in 2025. However, market turmoil caused by reciprocal tariff announcements decreased some respondents' appetite for M&A.
Interestingly, private credit is expected to be the single most important form of financing for M&A deals in the next two years, especially in Africa, the Middle East, and Southeast Asia. Domestic strategic buyers are also expected to be the most active acquirers in 2025, particularly in emerging markets like Latin America, Africa, and South and Southeast Asia.
The law firm's global corporate, M&A and securities team provides legal advice on various 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 team, which has over 450 M&A partners and 700 other deal lawyers worldwide, advises on some of the most high-profile, complex, and significant transactions in the market.
For media inquiries, contact Raj Karia, Global Head of Corporate, M&A and Securities, at Tel: 44 20 7444 5086, or Louise Nelson, Head of PR for Europe, Middle East, and Asia, at Tel: 44 20 7444 5086 or Cell: 44 79 0968 4893. For US inquiries, contact Dan McKenna, US Director and Global Head of PR and Communications, at Tel: 1 713 651 3576.
The report was based on a survey of 200 top-level executives from multinational corporations, large private equity firms, and major investment banks. A notable finding from the survey is that 51% of respondents have acquired an AI business, with 46% looking to acquire one in the near term.
In conclusion, the Global M&A Trends and Risks report for 2025 provides valuable insights into the current and future landscape of global mergers and acquisitions. As companies navigate the complexities of this landscape, they are advised to focus on strategic growth, cost optimization, and resilient structuring while remaining vigilant towards evolving global risks and regulatory changes.
- In the midst of an improving economic climate, the technology sector might benefit from increased M&A activity, as optimistic business prospects and private credit financing create favorable conditions.
- As the insurance market grapples with digital disruption, climate volatility, and cyber risks, technology solutions could play a crucial role in mitigating sector-specific risks, thus enhancing risk management and underwriting processes.
