Mergermarket's new Global Mergers and Acquisitions Trends and Risks Report is now available
In a complex and ever-evolving global economic landscape, the 3rd edition of the Global M&A Trends and Risks report, jointly released by a renowned global law firm and Mergermarket, offers valuable insights into the key trends and risks shaping Mergers and Acquisitions (M&A) in 2025. The report, based on a survey of 200 top-level executives, sheds light on the strategies and challenges companies and investors are likely to face in the coming year.
The report emphasizes a challenging yet resilient M&A environment, characterised by macroeconomic uncertainty, geopolitical tensions, technological disruption, and evolving regulatory environments.
Key trends include:
- A resilient and cautiously optimistic approach amid volatility, with M&A activity remaining robust despite ongoing US tariffs and geopolitical risks. The optimism is expected to accelerate dealmaking in the second half of the year.
- Regional variations in M&A activity, with EMEA seeing strong volume growth (~11% year-on-year), and global insurance M&A declining somewhat in the first half of 2025, particularly in APAC and the Middle East.
- A focus on strategic M&A with companies and investors selectively pursuing deals, favouring smaller bolt-on acquisitions, share buybacks, and organic investments over large-scale cross-border transactions. Private equity interest has softened, reflecting caution.
- The increasing importance of technological integration and innovation, particularly the integration of Artificial Intelligence (AI) into business and M&A strategies, as a key driver for future competitiveness.
Key risks identified include:
- Geopolitical uncertainty and trade policies, such as reciprocating tariffs and ongoing conflicts like the Russia-Ukraine war, which pose significant risks for supply chains, pricing, and global trade, challenging deal value and execution.
- Macroeconomic challenges, including inflation, fiscal deficits, and broader economic turbulence, which create headwinds for dealmaking, impacting valuations and investor confidence for at least the next 18-24 months.
- Climate and cyber risks, including increasing climate volatility, infrastructure vulnerabilities, and cyber threats, which add risk layers to M&A due diligence and risk management.
- Regulatory and insurance market pressures, including evolving regulations and insurance market stresses, which have direct implications on risk allocation and deal structuring in sectors like insurance.
In summary, the 2025 global M&A environment is characterised by strategic adaptability amid ongoing uncertainty. Success depends on rigorous due diligence, risk mitigation, and embracing technological advancement, particularly AI. Geopolitical and macroeconomic risks remain significant constraints shaping deal activity and valuations.
The law firm's global corporate, M&A, and securities team offers legal advice across various M&A matters, with expertise in public transactions, take-privates, strategic review processes, joint ventures, carveout dispositions and acquisitions, debt and equity capital markets transactions, governance, compliance, and general commercial and corporate advisory matters.
The team, consisting of over 450 M&A partners and 700 other deal lawyers worldwide, advises on high-profile, complex, and significant transactions in the market. The survey, conducted across Q1 and Q2 of 2025, included responses from 100 executives from multinational corporations, 50 from large private equity firms, and 50 from major investment banks.
For media enquiries, please contact Louise Nelson, Head of PR for Europe, Middle East, and Asia, at Tel: 44 20 7444 5086, Cell: 44 79 0968 4893, or Dan McKenna, US Director and Global Head of PR and Communications, at Tel: 1 713 651 3576.
[1] Source: Global M&A Trends and Risks Report 2025, Global Law Firm and Mergermarket [2] Source: Mergermarket's Global M&A Report Q1-Q2 2025 [3] Source: KPMG's M&A Predictions for 2025 [4] Source: PwC's Global Economy Watch 2025
- As the global economy progresses, businesses and investors are urged to stay vigilant in the face of a challenging M&A environment, marked by macroeconomic uncertainty, geopolitical tensions, technological disruption, and evolving regulatory environments, as highlighted in the third edition of the Global M&A Trends and Risks report.
- Companies and investors are increasingly focusing on strategic M&A, selectively pursuing smaller bolt-on acquisitions, share buybacks, and organic investments over large-scale cross-border transactions, careful to consider the impact of technological integration and innovation, particularly AI, on their future competitiveness.
