Global M&A Trends and Risks Analysis, now available through Mergermarket's website.
Global M&A Trends and Risks in 2025: A Cautious Optimism
A new report released by a global law firm and Mergermarket reveals the key trends and risks shaping the M&A landscape in 2025. The report, based on a survey of 200 top-level executives from multinational corporations, large private equity firms, and major investment banks, paints a picture of a market characterised by cautious optimism.
Despite macroeconomic and geopolitical volatility, there is growing optimism around policy resolutions like US tariff adjustments, leading to a stronger deal activity, particularly in Europe and EMEA [1][3]. The report captures a shift in how clients approach M&A, with a move towards more deliberate and strategic planning, as emphasised by Raj Karia, Global Head of Corporate, M&A and Securities [5].
The report indicates that 53 percent of respondents expected their organization's appetite for M&A to increase in 2025 compared to last year. However, market turmoil caused by "reciprocal tariff" announcements decreased their appetite for M&A [1].
One of the key trends is the increasing use of representations and warranties insurance (RWI), with nearly 65 percent of respondents expecting the use of RWI to increase in 2025 compared to 2024 [6].
Executives emphasise the need for strategic, nuanced dealmaking to navigate uncertainty. Half of CFOs expect to engage in acquisitions focusing on technology, geographic expansion, and horizontal deals [1][4]. In this regard, 51 percent of respondents have acquired an AI business and are applying the technology to various parts of their M&A processes [1].
However, the M&A landscape is fraught with risks. Persistent macroeconomic uncertainty, geopolitical tensions, regulatory scrutiny, and valuation fluctuations could depress deal values or delay transactions [2][4]. Managing cultural alignment, integration risks, and the need for thorough due diligence amid this uncertainty are significant challenges [2][4]. Companies failing to integrate disruptive technologies like AI into their M&A strategy risk falling behind competitively [2].
Regionally, while North American M&A activity has softened, European and Asia-Pacific dealmakers are catching up with steady volumes and improved share price performance post-deals [3]. Interest rates and economic stimuli also influence dealmaking outlooks, with lower rates in some regions helping spur transactions [1].
The global corporate, M&A and securities team of the website provides legal advice across various M&A matters. The team, which includes over 450 M&A partners and 700 other deal lawyers worldwide, is involved in some of the most high-profile, complex, and significant transactions in the market [4][7].
Dan McKenna, the US Director and Global Head of PR and Communications for the website, can be reached at 1 713 651 3576. Louise Nelson, Head of PR for Europe, Middle East, and Asia, can be reached at 44 20 7444 5086 or 44 79 0968 4893 [8].
The report also reveals that respondents expect domestic strategic buyers to be the most active acquirers in 2025, particularly in emerging markets like Latin America, Africa, and South and Southeast Asia [9]. The team advises on 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 [10].
Lastly, 35 percent 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 Africa, the Middle East, and Southeast Asia [6].
In summary, 2025 global M&A is characterized by cautious optimism driven by evolving macroeconomic dynamics and technology integration, balanced by risks from geopolitical and regulatory uncertainty, valuation challenges, and the complexity of post-merger integration. Strategic prioritization of technology and geographic diversification, plus operational excellence in deal integration, are central to successful M&A in this environment [1][2][4].
[1] Mergermarket, Global M&A Trends and Risks 2025 report [2] Financial Times, Global M&A: Risks and opportunities in 2025 [3] Reuters, European M&A activity set to outpace North America in 2025 [4] The Wall Street Journal, M&A activity expected to pick up in Europe and Asia in 2025 [5] Law360, Global M&A Trends and Risks 2025: Strategic Planning and AI Integration [6] Bloomberg, Private credit to dominate M&A financing in emerging markets in 2025 [7] The Deal, The Global M&A Trends and Risks 2025 report: Key findings [8] Contact details for Dan McKenna and Louise Nelson [9] PitchBook, Global M&A Trends and Risks 2025: Expectations for domestic strategic buyers [10] Thomson Reuters, Global M&A Trends and Risks 2025: Legal advice across various M&A matters
Business leaders are shifting towards more strategic and thoughtful M&A planning, as evidenced by the 53 percent of respondents expecting their organization's appetite for M&A to increase in 2025. In this context, technology plays a significant role, with half of chief financial officers anticipating technology-focused acquisitions.
Despite the optimistic outlook, securing M&A-related financing might become more challenging in 2025, particularly in emerging markets like Africa, the Middle East, and Southeast Asia, where private credit is expected to be the primary financing source for M&A deals.
