Mergermarket unveils their Global Mergers and Acquisitions Trends and Risks Report on their website
The third edition of the Global M&A Trends and Risks report, a collaboration between our website and Mergermarket, has been released. The report examines trends shaping dealmaking around the world and includes a survey of 200 top-level executives.
Key Trends
Resilience Despite Volatility
M&A activity remains resilient despite significant macroeconomic, geopolitical, and policy volatility. Companies are seeking profitable growth at scale and are willing to pursue deals aggressively.
Optimism on Tariff Resolutions
Increased business confidence stems from optimism about resolving US tariff policies, supporting robust M&A volumes and deal counts, especially in the first half of 2025, with expectations of acceleration later in the year.
Regional Variations
- EMEA (Europe, Middle East, Africa) M&A volumes increased approximately 11% year-on-year, buoyed by improving economic outlooks and falling interest rates.
- Asian and Oceanian markets also saw a 6% rise in deal numbers, with a significant increase in deal value driven by several large transactions.
- North American M&A cooled somewhat in Q2 2025 due to elevated interest rates and economic policy concerns, but companies that understand their value chains use M&A strategically to adapt.
Sector Focus
Financial services M&A experienced growth, particularly with large deals over $1 billion contributing to rising deal values.
Cross-Border Activity
There was a modest increase in cross-border acquisitions involving European targets, with non-Europeans acquiring more European companies.
Key Risks
Macroeconomic and Geopolitical Uncertainty
Ongoing geopolitical tensions, unpredictable tariff policies, and macroeconomic volatility remain key risks that affect dealmaking decisions and timing.
Interest Rate Environment
Elevated interest rates, especially influenced by US Treasury yields, create funding challenges and dampen some deal activity, as seen in North America.
Volatility Due to Trade Policies
Recent US tariffs and announcements caused pauses or delays in deals worldwide, reflecting caution among dealmakers amid uncertain trade environments.
Decline in Transformational Deals
In some regions, deal value declined due to fewer transformational, high-value deals, signaling risk in deal quality or scale.
Summary
The global M&A market in 2025 is marked by careful optimism as dealmakers navigate significant uncertainties, including geopolitical risks, interest rate pressures, and trade policy fluctuations. Resilience and creativity in dealmaking strategies are key to capitalizing on opportunities, particularly by leveraging cross-border transactions and sector-specific growth areas such as financial services.
For more insights from the third edition of the Global M&A Trends and Risks report, we recommend consulting the law firm’s official publication or website directly.
The global corporate, M&A, and securities team of our website provides legal advice on various M&A matters. For further information, you can contact Louise Nelson, Head of PR - Europe, Middle East, and Asia, at +44 20 7444 5086 or +44 79 0968 4893.
Additional findings from the report include the agreement among respondents that private credit is gaining momentum across Africa, the Middle East, and Southeast Asia as the single most important form of financing for M&A deals over the next two years. Furthermore, 51% of respondents have acquired an AI business, with respondents applying the technology to various parts of their M&A processes. The team includes over 450 M&A partners and 700 other deal lawyers worldwide, advising 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.
[1] Source: Global M&A Trends and Risks report (third edition), our website in collaboration with Mergermarket [2] Source: Global M&A Trends and Risks report (third edition), our website in collaboration with Mergermarket [3] Source: Global M&A Trends and Risks report (third edition), our website in collaboration with Mergermarket [4] Source: Global M&A Trends and Risks report (third edition), our website in collaboration with Mergermarket
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- The financial services sector, a focus area in M&A activity, saw growth, particularly with large deals over $1 billion, indicating the significant role of technology in shaping these transactions.
- The increased business confidence, bearing on robust M&A volumes and deal counts, is influenced by optimism about resolving US tariff policies, demonstrating the intersection of technology (in terms of expanded trade agreements facilitated by technology) and business dealings.
