2025 M&A trends survey

Survey optimism is running high for 2025: This year’s survey represents the highest level of respondent optimism since before the pandemic.

The data: Respondents report strong positive performance within their enterprises and show relatively strong optimism for the M&A rebound that started in 2024 accelerating to some degree in the new year.

The why: After the volatility experienced by the M&A market throughout the pandemic, and a down year in 2023, M&A is on the rise again as surveyed dealmakers look to 2025. Based on responses, part of this has to do with M&A leaders now having adjusted more fully to external factors and persistent risks with innovation and agility.

Momentum building after a measured 2024 M&A market rebound: In both volume and value, US dealmaking has been on the rise in 2024 after the very soft market of 2023. This trend is likely to accelerate in 2025, according to our survey results and other analyses.

The data: Dealmakers reported that their organizations have shown increases in a number of key performance metrics. Consistent with the overall growth of the US economy in 2024, these successes included revenue growth, operating efficiencies, and customer satisfaction. The indicators that rose the most were largely similar for corporate respondents as for private equity.

The why: The case for an M&A rebound in 2025 is supported by three main factors: First, the economic tailwinds of 2024, with a reasonable prognosis that such tailwinds will increase in the new year. Second, between 78% and 83% of corporate and private equity respondents reported strong growth and positive performance for 9 key business metrics in 2024. Finally, the commitment to transformation and restructuring that most survey respondents have demonstrated in the past couple of years prepares these organizations to reengage in dealmaking to a greater degree.

Pivots are becoming a norm: Per our new survey findings, financing, technological, and strategic pivots are now more embedded in most organizations.

The data: Eighty-eight percent of corporate respondents and 81% of private equity respondents in this year’s survey indicated they had made shifts in their deal targeting strategies in the past two years.

The why: Agility has become proactive and more established in the M&A strategy and approach of the survey respondents. Per the survey responses, pivoting has become an essential competency and thus a “new normal” for M&A as we enter the middle years of the decade.

Embedding technology and responsive foreign targeting in dealmaking: Corporations and private equity firms have made real progress with solidifying their efforts around digital transformation and an adaptive, steady approach toward cross-border value creation.

The data:

• Nearly all (97%) of responding corporations and private equity firms have now incorporated Generative AI, advanced data analytics, and other automation technologies into their dealmaking processes.
• At least 85% of respondents have cross-border dealmaking near the top of their to-do lists for the new year.

The why: These two areas represent shifts to new M&A strategies and models. This isn’t surprising given the different business models and opportunities to realize greater returns from technology implementation and scaling digital transformation across an enterprise or portfolio.

Chief among respondents’ reasons for the heightened interest in foreign markets? Market expansion and access to technology. Dealmakers pursuing cross-border opportunities are increasingly favoring the world’s more developed and stable markets with additional biases to shorten supply chains, reshore production, and be closer to home.