Global M&A Trends and Risks unveiled through the platform of Mergermarket's website
The third edition of the Global M&A Trends and Risks Report, a collaborative effort between a major law firm and Mergermarket, has been released, highlighting key trends and risks shaping dealmaking around the world in 2025.
According to the report, global M&A activity in the first half of 2025 saw a slight decline, with deal value reaching approximately $1.1 trillion. This figure represents a drop from late 2024 and falls below historical averages, reflecting lingering market volatility and uncertainty.
Regional disparities are also a notable trend, with the Americas, particularly the US, showing robust activity, while Europe experienced a 14% decline, and Asia-Pacific saw a significant 43% drop, impacted by geopolitical tensions and local challenges.
Sectoral variations are also prevalent, with industrials, energy, and healthcare sectors rebounding strongly, while materials and consumer sectors saw steep declines.
In terms of insurance M&A, global deals fell in H1 2025, with APAC ranking third in deal volume. High valuations, geopolitical uncertainty, inflation concerns, and economic turbulence led carriers to prioritize smaller bolt-on deals, share buybacks, and organic projects over large acquisitions. Cross-border deals were rare, with more focus on domestic opportunities.
The report also identifies several risks driving market dynamics, including geopolitical risks, tariff uncertainties, climate volatility, cyber threats, and infrastructure challenges. These risks impact pricing, supply chains, and global trade, necessitating strategic risk navigation for dealmakers.
Despite these challenges, there is a cautious optimism for acceleration in deal-making in the second half of 2025, fueled by improving economic conditions, easing interest rates, and potential resolutions of US tariff policies. EMEA M&A volumes showed 11% year-on-year growth early in 2025.
The report captures a shift in how clients approach M&A, with a move towards more deliberate and strategic planning, as stated by Raj Karia, Global Head of Corporate, M&A and Securities. Louise Nelson, the Head of PR for Europe, Middle East, and Asia for the law firm, emphasizes the importance of strategic positioning and regional economic improvements to support a rebound in deal activity later in the year.
The global corporate, M&A and securities team of the law firm provides legal advice on various M&A matters worldwide. The team consists of over 450 M&A partners and 700 other deal lawyers.
The report also includes a survey of 200 top-level executives, including 100 executives from multinational corporations, 50 from large private equity firms, and 50 from major investment banks. The survey was conducted across Q1 and Q2 of 2025, with results analyzed by Mergermarket and responses anonymized and presented in the aggregate.
Key findings from the survey include:
- 44 percent of survey participants expect domestic private equity buyers to be among the most active types of acquirers in deal markets in 2025.
- 46 percent report that they are looking to acquire an AI business in the near term.
- 51 percent have already acquired an AI business, with respondents applying the technology to various parts of their M&A processes.
- 53 percent of respondents expected their own organization's appetite for M&A to increase in 2025 compared to last year, but the market turmoil caused by "reciprocal tariff" announcements impacted sentiment, causing more than two-thirds of respondents to say the escalation in trade tensions had caused their appetite for M&A to decrease.
- Overall, nearly 65 percent of respondents expect the use of representations and warranties insurance (RWI) to increase in 2025 compared with 2024, including 37 percent who expect that increase to be significant.
- A quarter of respondents believe private credit will be the single most important form of financing to be employed in the market over the next two years for M&A deals.
- 35 percent of respondents expect it to become more difficult to secure M&A-related financing in 2025 compared with 2024.
For more information, please contact Dan McKenna, the US Director and Global Head of PR and Communications, at +1 713 651 3576, or Louise Nelson, the Head of PR for Europe, Middle East, and Asia, at +44 20 7444 5086 (office) or +44 79 0968 4893 (cell).
[1] Global M&A Trends and Risks Report (third edition), 2025. [2] Global M&A Trends and Risks Report (third edition), 2025. [3] Clyde & Co Report, H1 2025. [4] Global M&A Trends and Risks Report (third edition), 2025.
- The third edition of the Global M&A Trends and Risks Report reveals that 46 percent of surveyed executives are looking to acquire an artificial intelligence (AI) business in the near future, and 51 percent have already incorporated AI into their M&A processes.
- In the third edition of the Global M&A Trends and Risks Report, it's stated that 53 percent of respondents expect their organization's appetite for M&A to increase in 2025, but escalating trade tensions have caused more than two-thirds to report a decrease in their M&A appetite.
