Global M&A Trends and Risks Report unveiled by Mergermarket's website
A new report, the third edition of the Global M&A trends and risks report, has been released by a global law firm and Mergermarket. The report provides insights into the key trends and risks shaping dealmaking around the world, based on a survey of 200 top-level executives from multinational corporations, large private equity firms, and major investment banks.
Optimism amid Uncertainty
Despite ongoing geopolitical tensions, tariff policies, and inflationary pressures, there is increased business confidence and dealmaking momentum globally. Sectors like insurance and financial services are seeing robust activity in selective deals and bolt-on acquisitions.
Geopolitical and Systemic Risks
Persistent geopolitical conflicts, especially in regions like the Middle East, and the fallout from tariffs, continue to pose risks to cross-border M&A. These issues can impact supply chains, pricing inflation, and global trade dynamics.
Regional Trends
M&A volumes grew strongly in EMEA, supported by improving economic forecasts and falling interest rates, while the APAC insurance sector saw a decline in deals, highlighting uneven regional market activity.
Activity Focus
Companies and private equity are cautious, preserving capital amid high valuations and economic turbulence. As a result, there is a shift towards smaller, strategic bolt-on deals, domestic-focused acquisitions, and organic growth investments rather than large cross-border transactions.
Sector-specific Developments
In insurance, there is interest in niche sectors such as specialist marine MGAs in the UK. The financial services sector saw increased deal numbers and disclosed deal values, backed by anticipated inflation and interest rate declines supporting further activity.
Risks Influencing M&A
Besides geopolitical and macroeconomic risks, emerging threats include climate volatility, cyber risks, and infrastructure challenges. These risks affect insurers' underwriting and pricing and consequently influence M&A strategies, with firms needing to navigate these evolving exposures carefully.
Overall, the 2025 M&A landscape is characterized by cautious optimism, where dealmakers balance ongoing uncertainties with selective growth opportunities driven by favorable valuations, economic stimulus efforts, and industry-specific dynamics.
Contacting the Global M&A Team
More than 450 M&A partners and 700 other deal lawyers worldwide advise on high-profile, complex, and significant transactions. For media inquiries, you can contact:
- Louise Nelson, Head of PR for Europe, Middle East, and Asia: Tel: 44 20 7444 5086, Cell: 44 79 0968 4893.
- Dan McKenna, US Director and Global Head of PR and Communications: Tel: 1 713 651 3576.
The global corporate, M&A, and securities team advises on take-privates, carveout dispositions, debt and equity capital markets transactions, governance, compliance, and general commercial and corporate advisory matters.
According to Raj Karia, the Global Head of Corporate, M&A and Securities, there is a clear shift in how clients approach M&A, with a move towards more deliberate and strategic planning. Furthermore, 53% of respondents expected their organization's appetite for M&A to increase in 2025 compared to last year, but market turmoil caused by reciprocal tariff announcements decreased their appetite for M&A.
The report also reveals that 44% of survey participants expect domestic private equity buyers to be among the most active types of acquirers in deal markets in 2025, particularly in emerging markets such as Latin America, Africa, and South and Southeast Asia. Additionally, 51% of respondents have already acquired an AI business, and 46% report that they are looking to acquire an AI business in the near term.
Lastly, 65% of respondents expect the use of representations and warranties insurance (RWI) to increase in 2025 compared to 2024, with more than 45% of respondents in the Middle East and South and Southeast Asia forecasting a significant increase. Furthermore, 35% of respondents expect it to become more difficult to secure M&A-related financing in 2025 compared with 2024, and private credit is expected to be the single most important form of financing for M&A deals in Africa, the Middle East, and Southeast Asia.
[1] Source: Global M&A trends and risks report (third edition) [2] Source: Mergermarket [3] Source: Dealogic [4] Source: Willis Towers Watson
- In the context of the emerging M&A landscape in 2025, heightened interest in sectors such as finance and technology is discernible as companies and private equity firms increasingly cautious about high valuations and economic turbulence, opt for smaller, strategic bolt-on deals, domestic acquisitions, and organic growth investments.
- Despite the increased activity in sectors like insurance and financial services, geopolitical conflicts, tariffs, climate volatility, cyber risks, and infrastructure challenges pose significant risks to cross-border M&A dealings, necessitating meticulous navigation by firms to address these evolving exposures.
