Mergers and Acquisitions Platform
In the ever-evolving business landscape, mergers and acquisitions (M&A) continue to play a crucial role in helping global companies achieve strategic objectives, particularly in times of change. This article provides an overview of the driving factors, risks, and opportunities in M&A activities across various industries and geographies in 2025.
The M&A practice, a key service offered by leading law firms, is designed to help clients execute M&A projects effectively. This practice provides training to enhance clients' understanding of M&A processes, assesses the driving factors, risks, and opportunities they face, and offers expertise in assessing risks and opportunities associated with M&A across various industries and geographies.
One of the primary driving factors in 2025 is the improved clarity in monetary policy and expectations of more supportive regulatory frameworks, especially under the new U.S. administration. This boost in CEO confidence is stimulating corporate M&A activity worldwide. Another factor is the high levels of dry powder held by private equity sponsors, who are increasingly focusing on deploying capital, driving a wave of sponsor-to-sponsor deals, minority stake sales, and innovative continuation funds to unlock liquidity.
However, M&A activities also come with risks. Geopolitical and regulatory uncertainties, such as ongoing tensions and tariff uncertainties, pose challenges, particularly for cross-border deals. This has led dealmakers to favour domestic or intra-regional transactions over complex cross-border ones. Economic volatility and deal volume decline are also concerns amid uncertain economic conditions, with the total global number of deals declining about 9% despite an increase in deal values by 15%.
Despite these risks, there are several opportunities for companies engaged in M&A activities. The AI opportunity is rapidly evolving, with M&A expected to be a key vehicle for companies to build competitive AI stacks and capabilities. The fintech sector continues to reshape global financial services, offering broad opportunities for M&A despite a short-term decline in venture capital funding. Asia-Pacific’s M&A activity growth presents substantial opportunities, supported by megadeals like Toyota’s $33bn take-private of a supplier and major energy sector consolidations in the region.
In conclusion, the M&A practice of leading law firms aims to support clients in navigating the complexities of M&A projects, providing a comprehensive approach that covers all stages from planning to execution. The M&A hub, a comprehensive resource for clients engaged in M&A activities, presents insights, training, and key resources to support clients in planning and delivering M&A projects. These activities offer opportunities to reshape organisations and access new markets, making M&A a strategic tool for global businesses in 2025.
References: [1] Goldman Sachs, Global Investment Banking, "Global M&A Outlook: 2025 and Beyond," 2024. [2] PwC, Deals, "M&A Integration: A Guide to Success," 2024. [3] McKinsey & Company, Corporate Finance, "The New Era of M&A: 2025 and Beyond," 2024. [4] Deloitte, M&A, "The Future of M&A: A 2025 Perspective," 2024.
The M&A practice, a key service provided by leading law firms, offers assistance in executing M&A projects effectively by providing training, assessing driving factors, risks, and opportunities, and offering expertise in assessing risks and opportunities across various industries and geographies. With improved clarity in monetary policy and supportive regulatory frameworks, the high levels of dry powder held by private equity sponsors, and the AI opportunity and fintech sector reshaping global industries, M&A activities present strategic opportunities for global businesses in 2025. However, geopolitical and regulatory uncertainties, economic volatility, and deal volume decline pose challenges. This necessitates a comprehensive approach that covers all stages from planning to execution, as provided by the M&A practice of leading law firms and the M&A hub, a comprehensive resource for clients engaged in M&A activities. [Reference: 1, 2, 3, 4]
