Published Report Unveils Latest Global Mergers and Acquisitions Trends and Associated Risks
The global M&A market has started 2025 on a positive note, despite ongoing trade tensions, regulatory uncertainty, and the need for companies to adapt to rapidly evolving geopolitical and economic realities. The report, published by global law firm Norton Rose Fulbright in collaboration with Mergermarket, highlights several key trends and findings.
Global M&A Landscape and Macro Drivers
The report indicates that strategic realignments are driving dealmakers to seek new avenues for growth. Asia-Pacific, particularly cross-border deals, is identified as a key growth area, outpacing other regions. This shift reflects a global move towards markets offering scalability and a favourable regulatory environment.
AI Integration in M&A
Artificial Intelligence (AI) is increasingly being recognised as both an enabler and a disruptor in M&A. On the operational side, AI is transforming compliance training and due diligence, making processes more efficient and responsive to complex regulatory environments. However, the rapid adoption of AI also introduces new risks, particularly around data governance, privacy, and third-party risk management (TPRM).
Deal Insurance
While the report does not specifically detail innovations or shifts in deal insurance, the broader context suggests that the market for deal insurance remains robust, underpinned by continued uncertainty and regulatory complexity. Deal insurance is likely being used more strategically as a tool to manage transactional risks in an environment where buyers and sellers face heightened oversight and potential liability.
Private Credit’s Expanding Role
Private credit has cemented its position as a critical funding source for M&A transactions, especially in a climate where traditional bank financing faces tighter regulations and increased capital requirements. Private credit funds offer flexible structures and rapid execution, qualities highly valued in competitive and time-sensitive deal environments.
Private Equity Activity
Private equity remains a dominant force in global M&A, with firms executing both traditional buyouts and innovative joint ventures to access new markets and technologies. There is a notable uptick in cross-border activity, especially in Asia-Pacific, which is attracting increased attention from global sponsors seeking growth and diversification.
Emerging Risks and Compliance Trends
The report emphasises that companies must continuously adapt their ethics and compliance programs to keep pace with new risks, especially those introduced by AI and digital transformation. There is a growing focus on neuroscience-driven compliance training and the maturity of compliance programs, reflecting a shift towards more employee-centric and risk-aware cultures.
Insurance Sector Focus
Norton Rose Fulbright has also published a report looking at M&A activity in the insurance sector. One of the key findings is that demand for innovative companies remains strong in the insurance M&A market. InsurX, a digital exchange for the London insurance market, is an example of such an innovative company.
Deals and Acquisitions
The report examines trends shaping dealmaking around the world and includes a survey of 200 top-level executives. The survey reveals that 46 percent report that they are looking to acquire an AI business in the near term. Moreover, 44 percent of survey participants expect domestic private equity buyers to be among the most active types of acquirers in deal markets in 2025.
The Insurathon Competition
The Insurathon competition, held annually by Norton Rose Fulbright, aims to identify and support innovative tech start-ups and scale-ups within the insurance sector. This year, InsurX has been announced as the winner.
Conclusion
Norton Rose Fulbright’s 2025 report underscores that global M&A activity is rebounding, with strategic adaptation to AI, the rise of private credit, and sustained private equity activity shaping the market. Dealmakers are navigating a complex web of regulatory, ethical, and technological risks, with Asia-Pacific emerging as a hotspot for cross-border transactions. While AI offers efficiencies, it also demands heightened attention to compliance and risk management practices.
- Asia-Pacific, particularly cross-border deals, is identified as a key growth area in the global M&A market, reflecting a move towards markets offering scalability and a favorable regulatory environment.
- The adoption of Artificial Intelligence (AI) in M&A is transforming compliance training and due diligence processes, making them more efficient and responsive to complex regulatory environments, but also introduces new risks, particularly around data governance, privacy, and third-party risk management (TPRM).
- Private credit funds offer flexible structures and rapid execution, making them a critical funding source for M&A transactions, especially in a climate where traditional bank financing faces tighter regulations and increased capital requirements.
