The information provided is intended as informational and is not intended as, nor does it constitute, legal or professional advice or an endorsement or testimonial by Travelers for a particular product, service or company. Travelers does not warrant that adherence to, or compliance with, any recommendations, testimonials, best practices or guidelines will result in a particular outcome. In no event will Travelers, or any of its subsidiaries or affiliates, be liable in tort or in contract to anyone who has access to or uses this information for any purpose.
Source: Travelers M&A Study, 2025 Source: PitchBook Data, Inc.
To discover more key M&A trends and potential risks,
read the full report now.
View Report
Risks
“The complexity of combining many regulatory systems may result in a rise in compliance risks.”
- Vice President, Food Services, <1,000 employees
“Production and team bonding may be hampered by cultural misalignment.”
- CFO, Manufacturing, <1,000 employees
“Increased competition may arise, affecting market share and profitability.”
- Risk Manager, Telecommunications, <1,000 employees
“Customer loyalty and retention [decline].”
- CFO Banking/Financial Services, <1,000 employees
“Innovation may be hampered by the difficulty of retaining important personnel after acquisition.”
- Risk Manager, Retail, <1,000 employees
“Operational inefficiencies may result from incompatibilities between hardware, databases or software platforms.”
- Controller/Treasurer, Technology, <1,000 employees
Risks
Opportunities
“An improved ability to compete in important markets.”
- COO, Manufacturing, <1,000 employees
“Cutting-edge technology and solutions can be developed by combining resources and skills to promote innovation.”
- Controller/Treasurer, Technology, 1,000+ employees
“Access to a larger pool of talent can enhance capabilities and innovation.”
- Retail, 1,000+ employees
“Enhanced brand reputation can build a stronger brand identity and reputation.”
- Controller/Treasurer, Manufacturing, <1,000 employees
“Increased market share and growth might result from entering new markets or specialized markets.”
- Risk Manager, Healthcare, <1,000 employees
“Improved risk management, access to new technologies and innovations and improved financial stability.”
- Manager, Benefits/Compensation, Manufacturing, 1,000+ employees
Opportunities
The rate of M&A deals shows no signs of slowing down. Travelers surveyed business leaders across industries to uncover what they believe the opportunities – and risks – for M&As may be over the next five years. Here’s what we heard:
Business leaders’ views on future opportunities and risks of M&A activity
These companies largely reported positive sentiment regarding M&As.
While sentiment is positive, it is somewhat lower compared to midsized companies.
Integration was seen as more difficult, with the merging of technology and systems cited as the biggest challenge.
Large businesses (>500 employees)
Survey respondents indicated a high level of satisfaction post-M&A.
Integration was easier for smaller and midsized companies.
Midsized businesses were most likely to cite cultural differences and people dynamics as the biggest challenges of an M&A.
Midsized businesses (<500 employees)
Overall satisfaction is mostly high. However, midsized companies face challenges merging talent, while large companies are challenged merging operations.
Post-M&A employee sentiment
36% – Company culture
38% – Employee morale
38% – Customer satisfaction
40% – Risk management
43% – Innovation
43% – Employee retention
46% – Brand reputation
Source: Travelers M&A Study, 2025
Beyond financial performance:
Key indicators of M&A success
While the success of a merger or an acquisition often is measured in financial, technological and market share gains, there are other key areas where effective M&As can have positive effects.
Business leaders can look to these areas for gauging positive momentum or potential risk during and after M&A activities.
Source: Travelers M&A Study, 2025
Renegotiated or engaged new suppliers
43%
Adjusted insurance coverage
32%
Most significant changes post-M&As
After M&A
45% changed or added new technology safety practices such as implementing updated systems and tools.
41% changed or added new physical safety practices to ensure that operational and property safety align across the merged entity.
23% hired a new risk manager, reflecting the need for dedicated leadership in managing expanded risks.
Post-M&As, many strengthen risk management
During M&A
96% of companies report a change in risk management practices.
56% say the changes are significant, indicating major shifts in strategy.
M&A events trigger changes to risk practices:
Before M&A
Existing risk management practices are often siloed within each organization.
Companies maintain their own technology safety, physical safety and personnel structure, making insurance considerations crucial during due diligence.
Pre-M&As, risk management protocols differ:
Savvy risk managers and CFOs recognize growth potential through M&A activity and plan ahead to navigate new realities.
Risk management often improves after M&As
Short-term vs. long-term impact
In the short term, teams may face operational challenges and increased stress.
Over time, integrating systems and aligning cultures becomes a key focus.
Post-M&As, the adoption of new tech and evolving risk management strategies have a lasting impact on operations.
Key insight
Post-M&As, companies updated physical safety practices to meet new standards and adjusted property-related insurance coverage and carriers to better mitigate risks.
The impact of post-M&A activities can vary depending on the size of the business – midsized vs. large – but common risks also emerge:
M&As impact midsized vs. large businesses differently
Post-M&As, companies often face a variety of risks. Data collected from risk professionals reveals the following key insights:
Merging teams with different geographies, processes and cultures top the list of integration hurdles.
Midsized businesses struggle most with cultural integration, while larger companies face system and operational challenges and disruptions.
What risks pop up after the deal?
Select a topic for recommendations that can help mitigate M&A risks.
Click an action to learn more
Playbook Actions
Operations
Midsized
Businesses
Large
Businesses
M&A risk: Decreased productivity and increased stress
Operational disruptions
M&A activity can lead to reduced productivity and heightened stress, resulting in disruptions in operations. Midsized businesses encounter some operational disruption while large businesses note significant operational obstacles.
Respondents reported a nearly universal sentiment that their risk management practices are stronger after a merger or acquisition once key protocols have been implemented.
Take strategic steps that focus on the fundamentals of operational effectiveness.
Take the time to integrate the best risk management practices from each company.
Conduct due diligence on each other’s suppliers. Roll out updated safety trainings for all employees.
Playbook action:
Compliance
Midsized
Businesses
Large
Businesses
M&A risk: Legal risks and increased compliance costs
Regulatory/compliance changes
Companies should anticipate regulatory or compliance changes due to M&A legal exposures and increased compliance costs. Midsized businesses have fewer compliance challenges than large businesses which experience major compliance hurdles.
Larger companies in particular should apply tactics to ensure that merging these critical practices happens smoothly:
Conduct a thorough audit of both companies’ compliance practices.
Select the practices to keep; identify any gaps that should be closed.
Create and empower a diverse M&A integration team to monitor and optimize newly updated compliance practices.
Playbook action:
Technology
Midsized
Businesses
Large
Businesses
M&A risk: Downtime and compatibility issues
Merging technology issues
Mergers can cause downtime and compatibility issues when integrating technology systems. Midsized businesses have an easier time with technology integration than large businesses that report complex systems integration.
Organizations, especially those with 500+ employees, can benefit from using key strategies to facilitate better systems integration:
Clearly define objectives tied to technology integration.
Identify SMEs who will be responsible for driving integration success.
Partner with third-party technology experts to manage and monitor integration.
Playbook action:
Culture
Midsized
Businesses
Large
Businesses
M&A risk: Employee retention and morale drop
Cultural challenges
Cultural differences can challenge teams as they merge, leading to risks such as employee resistance and a drop in morale. Midsized businesses report high cultural integration issues, while large businesses face moderate cultural challenges.
Combining organizations can create a great deal of stress and worry for management (74%) and employees (70%) as its complexities may add to already strained workloads. Changing management strategies could help alleviate burnout and turnover:
Prioritize clear and consistent employee communication.
Identify and strengthen shared values.
Emphasize employee training for any new practices, systems and processes.
Playbook action:
Talent
M&A transactions increasingly aim to secure specialized talent in high-growth fields like manufacturing, technology and life sciences, with talent integration the key to long-term success.
Large tech players like Microsoft, Google and Amazon acquire AI startups to absorb cutting-edge talent and leadership.
In the Descartes deal, NetCHB’s expert team was a primary driver of the acquisition.
Talent-driven deals in traditional industries might consolidate workforces and address redundancies.
Secure Top Talent
Performance
Financial motivators include PE buyouts, portfolio optimizations and distressed sales aimed at stabilizing finances or generating higher returns.
PE deals accounted for 43% of all U.S. M&A activity YTD in 2024, exceeding $500 billion.
On the sell side, financial distress may motivate a rescue sale to either a PE or strategic buyer.
PE firms aim to expand by acquiring companies with strong fundamentals, leveraging higher multiples, favorable debt conditions and earnouts.
Enhance Financial Performance
Growth
Financially motivated transactions include most (PE) purchases on the buy side that are aimed at generating returns.
Example: Nakanishi acquired Danaher for ~$100 million, focused on expansion into the U.S. market and vertical supply chain integration.
Large companies seek economies of scale through strategic consolidation to remain competitive in tightened consumer markets.
Growth remains a primary motivator as companies seek to scale operations, expand into new markets and consolidate for efficiency.
Financially motivated transactions include most (PE) purchases on the buy side that are aimed at generating returns.
Example: Nakanishi acquired Danaher for ~$100 million, focused on expansion into the U.S. market and vertical supply chain integration.
Large companies seek economies of scale through strategic consolidation to remain competitive in tightened consumer markets.
Fuel Growth
Assets
Companies pursue assets like technologies, product lines or intellectual property to sharpen their competitive edge or strengthen supply chains.
Example: Descartes Systems Group acquired NetCHB for just under $100 million in 2022, motivated by its automated technology offerings.
Large firms often prioritize complementary assets in consolidations.
Assets often include cybersecurity technology to mitigate rising risks in digital ecosystems.
Acquire Critical Assets
Four main drivers:
What’s motivating M&A deals?
Companies typically seek mergers or acquisitions to strengthen their competitive position and achieve strategic goals. While the drivers of specific M&A activities vary, they often fall within four key business objectives.
Reset
Aligning operational processes, systems and workflows
Process and protocol integration
?
Aligning operational processes, systems and workflows
Process and protocol integration
Struggle
Improved efficiency and output of streamlined operations
Increased productivity
?
Improved efficiency and output of streamlined operations
Increased productivity
Success
Blending corporate cultures, values and work practices
Cultural integration
?
Blending corporate cultures, values and work practices
Cultural integration
Struggle
Unification of workforces, cultures and operational practices
Team integration
?
Unification of workforces, cultures and operational practices
Team integration
Success
Combining operations and teams across locations
Geographic integration
?
Combining operations and teams across locations
Geographic integration
Struggle
Strategic growth into new markets or increasing market share
Market expansion
?
Strategic growth into new markets or increasing market share
Market expansion
Success
Hover over each topic to reveal if it was a success or a struggle.
The biggest M&A successes and struggles cited by risk professionals
Provide a monetary investment to a company in exchange for a majority ownership stake that the firm eventually offloads, ideally at a profit.
Private equity buyouts
Encompass traditional consolidations made by a competitor or a complementary corporation seeking a permanent addition to its entity.
Strategic deals
M&A transactions fall within two distinct categories
U.S. private companies backed by PE firms have expanded over two decades, employing 12 million Americans.
PE firm buyout periods have increased from 5.7 years in 2022 to 7.1 years in 2023, per S&P Global.
Trends in private equity (PE) firm activity
Transactions through September 2024 valued at over $1.2 trillion.
9,000
+
January-September 2024
Successful M&As require strategic risk management at every stage
Every year, thousands of M&A deals are completed, highlighting the importance of mastering risk management practices throughout the journey.
Year-end activity continued strong in 2024, with over 9,000 M&A deals closing in the first three quarters totaling a staggering $1.2 trillion, with an average deal size of $792 million, according to financial data and research company PitchBook.
2025 M&A Study
A Travelers Special Report: Insights and Playbook for Risk Professionals
Successes & Struggles
Intro
Motivations
Playbook
Risk Management
Key Indicators
The information provided is intended as informational and is not intended as, nor does it constitute, legal or professional advice or an endorsement or testimonial by Travelers for a particular product, service or company. Travelers does not warrant that adherence to, or compliance with, any recommendations, testimonials, best practices or guidelines will result in a particular outcome. In no event will Travelers, or any of its subsidiaries or affiliates, be liable in tort or in contract to anyone who has access to or uses this information for any purpose.
Notes Source: Travelers M&A Study, 2025 Source: PitchBook Data, Inc.,
To discover more key M&A trends and potential risks,
read the full report now.
View Report
Risks
“The complexity of combining many regulatory systems may result in a rise in compliance risks.”
- Vice President, Food Services, <1,000 employees
“Production and team bonding may be hampered by cultural misalignment.”
- CFO, Manufacturing, <1,000 employees
“Increased competition may arise, affecting market share and profitability.”
- Risk Manager, Telecommunications, <1,000 employees
“Customer loyalty and retention [decline].”
- CFO Banking/Financial Services, <1,000 employees
“Innovation may be hampered by the difficulty of retaining important personnel after acquisition.”
- Risk Manager, Retail, <1,000 employees
“Operational inefficiencies may result from incompatibilities between hardware, databases or software platforms.”
- Controller/Treasurer, Technology, <1,000 employees
Risks
Opportunities
“An improved ability to compete in important markets.”
- COO, Manufacturing, <1,000 employees
"Cutting-edge technology and solutions can be developed by combining resources and skills to promote innovation.”
- Controller/Treasurer, Technology, 1,000+ employees
“Access to larger pool of talent can enhance capabilities and innovation.”
- Retail, 1,000+ employees
“Enhanced brand reputation can build a stronger brand identity and reputation.”
- Controller/Treasurer, Manufacturing, <1,000 employees
“Increased market share and growth might result from entering new markets or specialized markets.”
- Risk Manager, Healthcare, <1,000 employees
“Improved risk management, access to new technologies and innovations and improved financial stability.”
- Manager, Benefits/Compensation, Manufacturing, 1,000+ employees
Opportunities
The rate of M&A deals shows no signs of slowing down. Travelers surveyed business leaders across industries to uncover what they believe the opportunities – and risks – for M&As may be over the next five years.
Here’s what we heard:
Business leaders’ views on future opportunities and risks of M&A activity
These companies largely report positive sentiment regarding M&As.
While sentiment is positive, it is somewhat lower compared to midsized companies.
Integration was seen as more difficult, with the merging of technology and systems cited as the biggest challenge.
Large businesses ( >500 employees)
Survey respondents indicated a high level of satisfaction post M&A.
Integration was easier for smaller and midsized companies.
Midsized businesses were most likely to cite cultural differences and people dynamics as the biggest challenges of an M&A.
Midsized businesses ( <500 employees)
Overall satisfaction is mostly high however midsized companies face challenges merging talent while large companies are challenged merging operations.
Post-M&A employee sentiment
36% – Company culture
38% – Employee morale
38% – Customer satisfaction
40% – Risk management
43% – Innovation
43% – Employee retention
46% – Brand reputation
Source: Travelers M&A Study, 2025
Beyond financial performance:
Key indicators of M&A success
While the success of a merger or an acquisition often is measured in financial, technological and market share gains, there are other key areas where effective M&As can have positive effects.
Business leaders can look to these areas for gauging positive momentum or potential risk during and after M&A activities.
Source: Travelers M&A Study, 2025
Adjusted insurance coverage
32%
Renegotiated or engaged new suppliers
43%
Most significant changes post-M&As
After M&A
45% changed or added new technology safety practices such as implementing updated systems and tools.
41% changed or added new physical safety practices to ensure that operational and property safety align across the merged entity.
23% hired a new risk manager reflecting the need for dedicated leadership in managing expanded risks.
Post-M&As, many strengthen risk management
During M&A
96% of companies report a change in risk management practices.
56% say the changes are significant, indicating major shifts in strategy.
M&A events trigger changes to risk practices:
Before M&A
Existing risk management practices are often siloed within each organization.
Companies maintain their own technology safety, physical safety and personnel structure, making insurance considerations crucial during due diligence.
Pre-M&As, risk management protocols differ:
Savvy risk managers and CFOs recognize growth potential through M&A activity and plan ahead to navigate new realities.
Risk management often improves after M&As
Short-term vs. long-term impact
Post-M&A, the adoption of new tech and evolving risk management strategies have a lasting impact on operations.
Over time, integrating systems and aligning cultures becomes a key focus.
In the short term, teams may face operational challenges and increased stress.
Key Insight
Post-M&A, companies updated physical safety practices to meet new standards and adjusted property-related insurance coverage and carriers to better mitigate risks.
The impact of post-M&A activities can vary depending on the size of the business – midsized vs. large – but common risks also emerge:
M&A impact midsized vs. large businesses differently
Merging teams with different geographies, processes and cultures top the list of integration hurdles.
Midsized businesses struggle most with cultural integration, while larger companies face system and operational challenges and disruptions.
Post-M&A, companies often face a variety of risks. Data collected from risk professionals reveals the following key insights:
What risks pop up after the deal?
Select a topic for recommendations that can help mitigate M&A risks.
Click an action to learn more
Playbook Actions
Operations
Midsize
Businesses
Large
Businesses
M&A risk: Decreased productivity and increased stress.
Take strategic steps that focus on the fundamentals of operational effectiveness.
Take the time to integrate the best risk management practices from each company.
Conduct due diligence on each other’s suppliers.
Roll out updated safety trainings for all employees.
Respondents reported a nearly universal sentiment that their risk management practices are stronger after a merger or acquisition once key protocols have been implemented.
Playbook action:
Operational disruptions
M&A activity can lead to reduced productivity and heightened stress, resulting in disruptions in operations. Midsized businesses encounter some operational disruption while large businesses note significant operational obstacles.
Compliance
Midsize
Businesses
Large
Businesses
M&A risk: Legal risks and increased compliance costs
Conduct a thorough audit of both companies’ compliance practices.
Select the practices to keep; identify any gaps that should be closed.
Create and empower a diverse M&A integration team to monitor and optimize newly updated compliance practices.
Larger companies in particular should apply tactics to ensure that merging these critical practices happens smoothly:
Playbook action:
Regulatory/compliance changes
Companies should anticipate regulatory or compliance changes due to M&A legal exposures and increased compliance costs. Midsized businesses have fewer compliance challenges than large businesses which experience major compliance hurdles.
Technology
Midsize
Businesses
Large
Businesses
M&A risk: Downtime and compatibility issues
Clearly define objectives tied to technology integration.
Identify SMEs who will be responsible for driving integration success.
Partner with third-party technology experts to manage and monitor integration.
Organizations, especially those with 500+ employees, can benefit from using key strategies to facilitate better systems integration:
Playbook action:
Merging technology issues
Mergers can cause downtime and compatibility issues when integrating technology systems. Midsized businesses have an easier time with technology integration than large businesses that report complex systems integration.
Culture
Midsize
Businesses
Large
Businesses
M&A risk: employee retention and morale drop
Prioritize clear and consistent employee communication
Identify and strengthen shared values.
Emphasize employee training for any new practices, systems and processes.
Combining organizations can create a great deal of stress and worry for management (74%) and employees (70%) as its complexities may add to already strained workloads. Changing management strategies could help alleviate burnout and turnover:
Playbook action:
Cultural challenges
Cultural differences can challenge teams as they merge, leading to risks such as employee resistance and a drop in morale. Midsized businesses report high cultural integration issues, while large businesses face moderate cultural challenges.
Four main drivers:
What’s motivating M&A deals?
Companies typically seek mergers or acquisitions to strengthen their competitive position and achieve strategic goals. While the drivers of specific M&A activities vary, they often fall within four key business objectives.
Talent
Large tech players like Microsoft, Google and Amazon acquire AI startups to absorb cutting-edge talent and leadership.
In the Descartes deal, NetCHB’s expert team was a primary driver of the acquisition.
Talent-driven deals in traditional industries might consolidate workforces and address redundancies.
M&A transactions increasingly aim to secure specialized talent in high-growth fields like manufacturing, technology and life sciences with talent integration the key to long-term success.
Secure Top Talent
Performance
PE deals accounted for 43% of all U.S. M&A activity YTD in 2024, exceeding $500 billion.
On the sell side, financial distress may motivate a rescue sale to either a PE or strategic buyer.
PE firms aim to expand by acquiring companies with strong fundamentals, leveraging higher multiples, favorable debt conditions and earnouts.
Financial motivators include PE buyouts, portfolio optimizations and distressed sales aimed at stabilizing finances or generating higher returns.
Enhance Financial Performance
Growth
Financially motivated transactions include most (PE) purchases on the buy side that are aimed at generating returns.
Example: Nakanishi acquired Danaher for ~$100 million, focused on expansion into the U.S. market and vertical supply chain integration.
Large companies seek economies of scale through strategic consolidation to remain competitive in tightened consumer markets.
Growth remains a primary motivator as companies seek to scale operations, expand into new markets and consolidate for efficiency.
Fuel Growth
Assets
Example: Descartes Systems Group acquired NetCHB for just under $100 million in 2022, motivated by its automated technology offerings.
Large firms often prioritize complementary assets in consolidations.
Assets often include cybersecurity technology to mitigate rising risks in digital ecosystems.
Companies pursue assets like technologies, product lines or intellectual property to sharpen their competitive edge or strengthen supply chains.
Acquire Critical Assets
Team integration
Unification of workforces, cultures and operational practices
Success
Process and protocol integration
Aligning operational processes, systems and workflows
Struggle
Geogrpahic integration
Combining operations and teams across locations
Struggle
Increased Productivity
Improved efficiency and output of streamlined operations
Success
Market expansion
Strategic growth into new markets or increasing market share
Success
Cultural integration
Blending corporate cultures, values
and work practices
Struggle
The biggest M&A successes and struggles cited by risk professionals
January-September 2024
Transactions through September 2024 valued at over $1.2 trillion.
9,000+
Successful M&As require strategic risk management at every stage
Every year, thousands of M&A deals are completed, highlighting the importance of mastering risk management practices throughout the journey.
Year-end activity continued strong in 2024, with over 9,000 M&A deals closing in the first three quarters totaling a staggering $1.2 trillion with an average deal size of $792 million, according to financial data and research company, Pitchbook.
U.S. private companies backed by PE firms have expanded over two decades, employing 12 million Americans.
PE firm buyout periods have increased from 5.7 years in 2022 to 7.1 years in 2023, per S&P Global.
Trends in private equity (PE) firm activity
M&A transactions fall within two distinct categories
Encompass traditional consolidations made by a competitor or a complementary corporation seeking a permanent addition to its entity.
Strategic deals
Provide a monetary investment to a company in exchange for a majority ownership stake that the firm eventually offloads, ideally at a profit.
Private equity buyouts
Successes & Struggles
Intro
Motivations
Playbook
Risk Management
Key Indicators
A Travelers Special Report: Insights and Playbook for Risk Professionals
2025 M&A Study