Global M&A Trends and Risks Report is unveiled on our Mergermarket platform

In the ever-evolving world of business, understanding the trends and risks that shape deal-making is crucial. Norton Rose Fulbright, a global law firm, has recently released the third edition of its Global M&A Trends and Risks Report in collaboration with Mergermarket.

The report provides valuable insights into the key trends and challenges that companies may encounter in the M&A landscape for 2025. Here are some of the key findings:

Cybersecurity and Data Privacy: As complex M&A deals become more common, cybersecurity and data privacy are emerging as central concerns. These issues can significantly impact due diligence, risk allocation, and compliance validation.
Regulatory Complexity and Evolving Legislation: The report highlights the increasing regulatory complexity, particularly in markets like India, where new thresholds and sector-specific regulations extend deal timelines and compliance costs.
Macroeconomic Uncertainty and Geopolitical Tensions: Trade policies and fiscal deficits are expected to influence growth trajectories over the near term, with macroeconomic uncertainty and geopolitical tensions continuing to impact deal-making.
Rise of Private Equity Activity: Despite market volatility, private equity is playing a significant role in facilitating sales and deal-making across sectors, with private equity activity and deal volume growth expected to rise.
Strategic Adaptation: Dealmakers will need to adapt their strategies to regulatory uncertainty and trade tensions, involving rigorous due diligence, downside protection strategies, and operational readiness.
Integration of Technology: The integration of technologies like AI into business strategies is critical for future competitiveness. Failure to adopt AI poses a risk to companies’ M&A success.
Regional Variations in M&A Momentum: The report reveals strong activity growth in India, Asia-Pacific, Europe, and the Middle East, contrasting with declining deal volume in North America. This emphasizes the importance of geographical strategic planning.

These insights represent a comprehensive view from the report and are supported by additional commentary from other global advisory firms. The trends reflect an environment of both opportunity and complexity, with dealmakers needing to carefully navigate evolving regulations, technological innovation, and geopolitical risk.

Louise Nelson, Head of PR for Europe, Middle East, and Asia for the law firm, and Dan McKenna, US Director and Global Head of PR and Communications for the firm, are available for further comment and discussion on these findings. Louise's contact details include a phone number (44 20 7444 5086) and a cell phone number (44 79 0968 4893). Dan McKenna's contact details include a phone number (1 713 651 3576).

The survey for the report was conducted across Q1 and Q2 of 2025 and included responses from 200 top-level executives, with 100 executives from multinational corporations, 50 from large private equity firms, and 50 from major investment banks. Raj Karia, Global Head of Corporate, M&A and Securities, stated that the report captures a clear shift in how clients approach M&A, with a move towards more deliberate and strategic planning.

The global corporate, M&A, and securities team of Norton Rose Fulbright provides legal advice on 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. The law firm's M&A team is composed of over 1150 professionals worldwide, with over 450 M&A partners and 700 other deal lawyers. The team is responsible for advising on a broad spectrum of matters related to M&A.

Nearly 65 percent of respondents expect the use of representations and warranties insurance (RWI) to increase in 2025 compared to 2024. At the global level, 35 percent of respondents expect it to become more difficult to secure M&A-related financing in 2025 compared with 2024.

The report also highlights the increasing trend of companies acquiring AI businesses, with 51 percent having done so. The respondents applied the technology to various parts of their M&A processes.

The report concludes that dealmakers need to be aware of these trends and risks and adapt their strategies accordingly to ensure success in the evolving M&A landscape.

In the ever-evolving M&A landscape for 2025, smart investing in businesses hinges on the integration of advanced technologies like AI, as it poses a necessity for future competitiveness and M&A success.
Understanding and addressing regulatory complexities, cybersecurity concerns, and geopolitical tensions in the finance sector will be vital for companies involved in M&A deal-making, as these factors significantly shape the risks and trends that companies may encounter in the coming year.