Mergermarket's new Global Market Trends and Risk Report has been officially launched on their website.
The third edition of the Global M&A Trends and Risks report, published by a leading global law firm and Mergermarket, sheds light on the resilient and evolving M&A market. The report, based on a survey of 200 top-level executives, highlights how macroeconomic, geopolitical, and regional factors are shaping the M&A landscape.
Resilience Amid Volatility
Despite significant macroeconomic and geopolitical uncertainty, including US tariff policies and global economic volatility, M&A activity in 2025 remains robust. Continued dealmaking and strong valuations are rewarding consistent profitable growth.
Geographical Shifts in Activity
North America experienced a decline in deal volume in early 2025 compared to prior years, while Europe, Asia Pacific (especially China), and the Middle East have gained momentum and outperformed expectations, driven by improving economic outlooks and regional incentives.
Sector Leadership and Deal Size
The Technology, Media & Telecoms (TMT) sector led M&A deal activity in Q2 2025, with $169 billion worth of deals. Large “mega-deals” (exceeding $1 billion) accounted for the majority of deal value, and were more value-accretive compared to smaller deals. Telecommunications and materials sectors saw the highest returns for acquirers in H1 2025.
Strategic Focus Shifts
The M&A landscape is marked by a shift toward resilience and value-focused deals. Companies are navigating uncertainty with nuanced, creative dealmaking strategies that emphasize long-term value creation rather than volume alone.
Regulatory and Economic Outlooks
Increasing optimism about potential easing of trade tensions (notably US tariffs) and falling interest rates are contributing to improved business confidence and deal volume, particularly in EMEA and other key regions.
Deal Trends Outlook
The second half of 2025 is expected to experience acceleration in deal activity, supported by favorable conditions including economic stimulus efforts and stabilizing policy measures, suggesting cautious optimism for continued growth into 2026.
Key Findings
- Nearly 65 percent of respondents expect the use of representations and warranties insurance (RWI) to increase in 2025 compared to 2024.
- 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.
- More than two-thirds of respondents said the escalation in trade tensions had caused their appetite for M&A to decrease.
- 51 percent of respondents have acquired an AI business and are applying the technology to various parts of their M&A processes.
- 44 percent of survey participants expect domestic private equity buyers to be among the most active types of acquirers in deal markets in 2025.
- 35 percent of respondents expect it to become more difficult to secure M&A-related financing in 2025 compared with 2024.
- 46 percent report that they are looking to acquire an AI business in the near term.
Expert Advice and Recognition
The global corporate, M&A and securities team of the law firm offers legal advice on various M&A matters, including public transactions, strategic review processes, joint ventures, acquisitions, and more. The team has over 450 M&A partners and 700 other deal lawyers worldwide, and is globally recognized for their expertise and experience in handling complex transactions.
Raj Karia, the Global Head of Corporate, M&A and Securities at the law firm, stated that there is a clear shift in how clients approach M&A, with a move towards more deliberate and strategic planning. Louise Nelson, the Head of PR for Europe, Middle East, and Asia for the firm, and Dan McKenna, the US Director and Global Head of PR and Communications for the firm, are available for further inquiries.
For more information, you can contact Louise Nelson at her office phone number (44 20 7444 5086) or mobile phone number (44 79 0968 4893), or Dan McKenna at his office phone number (1 713 651 3576). The team advises on some of the most high-profile, complex, and significant transactions in the market.
[1] Source: Global M&A Trends and Risks Report 2025, published by a global law firm and Mergermarket. [2] Source: Mergermarket Q2 2025 M&A Review. [3] Source: PitchBook Q2 2025 M&A Report. [4] Source: Thomson Reuters Q2 2025 M&A Report.
Businesses in technology sector continue to drive M&A activity, with the Technology, Media & Telecoms (TMT) sector leading deal activity in Q2 2025. The report also highlights the increasing use of private credit as a significant form of financing for M&A deals over the next two years.
The resilient M&A landscape is being shaped by the strategic focus shifts towards value-focused deals, with businesses utilizing representations and warranties insurance (RWI) more frequently. This strategic planning is aiding companies in navigating geopolitical and economic uncertainties.
