"Mergermarket unveils their Global Mergers and Acquisitions Trends and Risks Report"
The third edition of the Global M&A Trends and Risks report, a joint venture between our website and Mergermarket, has been released. The report offers insights into the key trends and risks that businesses can expect to encounter in the M&A market in 2025.
Key Trends
The report highlights several key trends that are shaping the M&A landscape. Geopolitical and economic uncertainty remains a central challenge, leading to cautious corporate behaviour and investor sentiment. Fundraising challenges persist in private equity, with a decrease in the number of funds despite a slight increase in commitment amounts. Recovery in fundraising is not expected until 2027.
Record levels of secondary transactions and expansion of capital pools in private markets have emerged as strategic responses to market conditions. Government regulatory reforms and growing economic protectionism have increased the need for regulatory authorizations, especially for foreign direct investments (FDIs) and deals involving strategic sectors such as energy, technology, and infrastructure. This trend is notably strong in Europe.
Dealmaking remains robust but selective, with companies pursuing smaller bolt-on acquisitions, share buybacks, and organic investments rather than large cross-border deals. Interest rates are falling in some regions, with governments attempting to stimulate local economies, which could support more deal activity in the latter half of 2025 and into 2026.
Risks
Geopolitical risks and policy volatility continue to inject uncertainty into the M&A market, affecting deal volumes and pricing. Inflationary pressures and economic turbulence contribute to carrier (insurance) caution and high valuations, suppressing deal numbers especially in sectors like insurance.
Regulatory hurdles due to protectionism increase deal complexity and timelines, potentially delaying or derailing transactions. Market concentration risk due to fewer funds closing could limit access to capital and competition among buyers, impacting deal dynamics and pricing.
AI Adoption and Financing
The report reveals that 51 percent of respondents have already acquired an AI business and are applying the technology to various parts of their M&A processes. A significant increase in the use of representations and warranties insurance (RWI) is expected in 2025, with a significant increase forecasted in the Middle East and South and Southeast Asia.
35 percent of respondents expect it to become more difficult to secure M&A-related financing in 2025 compared with 2024, with private credit being the single most important form of financing for M&A deals in Africa, the Middle East, and Southeast Asia.
Outlook for 2025
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. 46 percent of respondents report that they are looking to acquire an AI business in the near term.
The global corporate, M&A and securities team of our website 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.
For more information, please contact Louise Nelson, Head of PR for Europe, Middle East, and Asia, at Tel: 44 20 7444 5086 or Cell: 44 79 0968 4893, or Dan McKenna, US Director and Global Head of PR and Communications, at Tel: 1 713 651 3576.
[1] Source: Global M&A Trends and Risks Report (third edition) [2] Source: Mergermarket [3] Source: PitchBook [4] Source: Dealogic
- In the context of the Global M&A Trends and Risks report, the expectations for 2025 include a significant increase in the use of representations and warranties insurance (RWI), which could potentially impact financing requirements.
- The third edition of the Global M&A Trends and Risks report anticipates that 35 percent of respondents may find it more challenging to secure M&A-related financing in 2025 compared to 2024, highlighting the role of finance in the M&A landscape.
