Global M&A trends and risks 2025
M&A Outlook
Now in its third year, our Global M&A trends and risks report, published in partnership with Mergermarket, captures insights from senior dealmakers across the world on the key risks and opportunities shaping mergers and acquisitions (M&A) deal activity in 2025.
Following a relatively promising start to the year for M&A activity, the US tariff announcements impacted dealmaking confidence, triggering global trade uncertainty and moderating M&A deals across the global M&A landscape. However, some optimism remains, and dealmakers are recalibrating—shifting toward regional M&A deals, adapting capital structures, and leaning on private debt.
While the 2025 M&A outlook largely remains uncertain, this survey shows that dealmakers are responding with prudence, pragmatism and patience as they prepare to seize the opportunities that lie ahead, taking advantage of moderating valuations. Changing dynamics will require companies to adapt – one part of that will require their M&A strategy to evolve, as predictions for medium to long-term prospects for deal making remain positive.
What else does 2025 have in store for dealmakers?
“Given the recent disruptions related to regulations, and supply chains in particular, strengthening of domestic operations would be the key to success.”
Vice president, Italian corporate.
Supply-chain risk
Dealmakers brace for a year of strategic recalibration amid trade-related uncertainties, AI acceleration and an increase in private credit
Reported their appetite for M&A has decreased due to trade tensions
Are looking to acquire an AI business in their near-term M&A strategy
Expect private credit to see the largest increase in use globally
67%
46%
43%
Key findings
What are the five key M&A trends in 2025?
Private credit helps to fill financing gap
Dealmakers move
quickly to integrate AI
Deal drivers and tariff uncertainty
Higher levels of regulatory scrutiny raise new challenges
2025 Global M&A trends and risks report
200
100
100
Download the report
Deal drivers and tariff uncertainty
53%
A promising start to the year saw
expecting their appetite for M&A to increase in 2025
However, in the aftermath of tariff announcements, responses to a follow-up question map a stark reversal of sentiment with
67%
reporting their appetite for M&A has decreased
But opportunities remain
33%
who say their M&A appetite has either stayed the same or increased are taking advantage of low valuations to snap up a bargain
28%
respondents in Asia who say their M&A appetite has increased, are looking to Europe and the Middle East for attractive targets
Download the report
Dealmakers move quickly to integrate AI
77%
63%
46%
Have recently partnered with or procured services from an AI provider
Believe financial institutions will benefit most from investment in digital transformation (excluding technology)
Are looking to acquire an AI business – a significant increase from 33% in 2024
63%
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
How is AI being used in the M&A process?
Private credit helps to fill financing gap
35%
39%
43%
Expect it to become more difficult to secure M&A-related financing, slightly elevated from our 2024 survey
Say equity capital is currently the most important form of financing that is being deployed, which has grown in popularity seeing a significant increase from 23% in 2024
Forecast increases in the use of private credit in markets where economic uncertainty and political volatility may give traditional lenders pause
Higher levels of regulatory
scrutiny raise new challenges
32%
Data protection &
privacy regulations
What areas are most likely to suppress M&A globally in 2025?
Support financial analysis and valuation modelling
What are most likely to be the top three barriers to completing M&A deals in 2025?
41%
Supply-chain risk
41%
Local economic risk
41%
“Inflation challenges could impact dealmaking in the US – there are still quite a lot of uncertainties.”
Managing director, US PE firm
41%
Local economic risk
“The cost of financing would be one of the major obstacles. Without the right financing tools, dealmakers might lose time and their competitive edge.”
Strategy director, Indian corporate
Lack of and increased cost of financing
41%
Lack of and increased cost of financing
41%
What are the five key M&A trends in 2025?
74%
75%
77%
Data protection &
privacy regulations
31%
Antitrust
regulation
Antitrust
regulation
29%
Foreign subsidies/
financial contributions regulation
Foreign subsidies/
financial contributions regulation
27%
Cyber
security
Cyber
security
23%
Foreign direct
investment regulations
Foreign direct
investment regulations
23%
Sanctions/
anticorruption
Sanctions/
anticorruption
20%
ESG/Climate change regulations
ESG/Climate change regulations
15%
National
security laws
National
security laws
M&A documentation
Deal sourcing
Improve M&A due diligence
Evolving strategies
Download the report
Acquirers are adopting a patient and proportionate approach to M&A as they look to unlock value – with less emphasis on opportunistic dealmaking and more focus on long-term planning.
Efforts to bolster supply chains are set to gain momentum against a backdrop of rising global uncertainty – spurring both upstream and downstream dealmaking.
Vertical
take-off
Dealmakers are expected to make greater use of deferred consideration mechanisms and alternative structures to overcome stubborn valuation gaps and get deals over the line.
Bridging the valuation gap
With conventional exit pathways becoming difficult to navigate, more and more PE firms are looking to the secondary market to realize the value of portfolio assets.
Secondaries
in the spotlight
Technology acquisition and integration stands out as a major motivator – not only in terms of capitalizing on high-growth assets – but also bolstering in-house M&A processes.
Tech, tools
and talent
Mergermarket blends market-leading human insights, advanced machine learning and 30+ years of Dealogic data to deliver the earliest possible signals of potential M&A opportunities, deals, threats and challenges.
leading senior
executives
C-suite and other top-level executives
from large PE
firms and major investments banks
AI as a tool to support M&A processes is not new, but these applications may be just the tip of the iceberg.
AI can also be used to map out the operational processes of target companies to help identify synergies and dissynergies and post-merger integration.
Acquirers are adopting a patient and proportionate approach to M&A as they look to unlock value – with less emphasis on opportunistic dealmaking and more focus on long-term planning.
Evolving strategies
Efforts to bolster supply chains are set to gain momentum against a backdrop of rising global uncertainty – spurring both upstream and downstream dealmaking.
Vertical take-off
Dealmakers are expected to make greater use of deferred consideration mechanisms and alternative structures to overcome stubborn valuation gaps and get deals over
the line.
Bridging the valuation gap
With conventional exit pathways becoming difficult to navigate, more and more PE firms are looking to the secondary market to realize the value of portfolio assets.
Secondaries in the spotlight
Download the report
Download the report
Download the report
Download the report
Download the report
Download the report
Download the report
Download the report
