Global trends and risks in Mergers and Acquisitions are unveiled through the release of the latest report by our platform, Mergermarket.
In the third edition of the Global M&A Trends and Risks report, a leading law firm highlights several key trends and risks shaping the global M&A landscape in 2025. The report, a collaborative effort with Mergermarket, examines dealmaking around the world and includes a survey of 200 top-level executives.
Robust M&A Activity in a Volatile Market
Despite significant macroeconomic, geopolitical, and policy uncertainties, including US tariff policies and global market volatility, M&A markets have remained robust. European and Asia-Pacific buyers are increasingly active, leading global M&A volumes, while US dealmaking has seen a relative retreat, reshaping the global M&A geography.
Sector-Specific Dynamics
M&A activity in the financial services sector rose notably, particularly in Europe and Asia, supported by strategic acquisitions aiming for revenue growth and cost optimization. The report underlines that 2025 M&A will be characterized by creative, courageous, and nuanced dealmaking to navigate these trends and risks.
Geopolitical and Policy Uncertainties
Ongoing geopolitical tensions and US tariff policies continue to inject uncertainty, potentially disrupting deal timing and valuations. Elevated and volatile interest rates, especially 10-year US Treasury yields, affect financing costs and could dampen deal activity, particularly in North America. Market fluctuations linked to policy announcements and reciprocal trade measures create a challenging environment for deal execution and pricing.
Private Equity and Strategic Buyers
Forty-four percent of survey participants expect domestic private equity buyers to be among the most active types of acquirers in deal markets in 2025. Domestic strategic buyers are expected to be the most active acquirers, particularly in emerging markets like Latin America, Africa, and South and Southeast Asia.
Increased Use of Representations and Warranties Insurance (RWI)
Sixty-five percent of respondents expect the use of RWI to increase in 2025 compared to 2024. The report also notes the growing importance of private credit as the single most important form of financing for M&A deals in the next two years, particularly in Africa, the Middle East, and Southeast Asia.
Contact Information
For more information, Dan McKenna, US Director and Global Head of PR and Communications, can be contacted at Tel: 1 713 651 3576. Louise Nelson, Head of PR - Europe, Middle East and Asia, can be reached at Tel: 44 20 7444 5086 or Cell: 44 79 0968 4893.
The global corporate, M&A, and securities team of our website offers 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. More than 450 M&A partners and 700 other deal lawyers worldwide provide advice on high-profile, complex, and significant transactions in the market.
The report also reveals that 51 percent have acquired an AI business, and 46 percent report that they are looking to acquire an AI business in the near term. As the global M&A landscape continues to evolve, this report serves as a valuable resource for understanding the trends and risks shaping the industry in 2025.
Technology plays a significant role in the M&A landscape, as 51% of survey participants have already acquired an AI business, and 46% are planning to do so in the near future.
Investments in the financial services sector are on the rise, especially in Europe and Asia, thanks to strategic acquisitions aimed at revenue growth and cost optimization, a trend that underscores the role of technology in these deals.
