M&A Outlook 2025

Renewed confidence amid turbulence

Following a fairly subdued period of M&A activity over the past couple of years, does the recent uptick in activity mean we have we finally turned the highly anticipated corner and can we now see a brighter future for M&A in 2025?

Currently the prognosis for M&A is much more positive, with many commentators talking about the next uptick in the M&A cycle, supported supported by a number of macro factors including more geo-political certainty, improved macro-economic sentiment, regulatory loosening, availability of capital and some fast-emerging sectors.

We explore some key themes we think will be driving market conditions and activity throughout 2025 and beyond.

M&A trends

M&A activity in the Middle East: A global bright spot

In a year where M&A activity in the West was subdued, the Middle East increased its transaction activity.

Middle East | Publication

Asia M&A trends: Future outlook

Whilst global M&A rose in deal value terms in 2024, both deal values and volumes fell in most parts of Asia.

Asia | Publication

M&A in the banking sector: Key themes for 2025

Many commentators speculate that 2025 will see a rebound in the overall volume, if not value, of bank deals.

Global | Publication

Foreign Subsidies Regulation: What to expect from the second year of the EU’s newest trade defence tool

Foreign Subsidies Regulation: Year 2 of EU’s newest trade defence tool

This year, is expected to be as active as 2024, providing further clarity on both the obligations of notifying parties and the EC's review methodology.

United Kingdom | Publication

Navigating the UK’s NSI Act regime: What should M&A parties expect in 2025?

As the UK’s enhanced national security regime under the National Security and Investment Act 2021 (NSI Act) enters its fourth year, what are the key things to know?

United Kingdom | Publication

Growth of the data centre market: Key M&A trends

We anticipate that the data centre market to continue to grow in 2025 and we expect to see some key trends emerge.

Global | Publication

M&A and merger control: What key trends should parties know for 2025?

The regulatory environment regarding merger control continues to evolve and is increasingly complex.

United Kingdom | Publication

M&A trends in Poland for 2025: A year of transformation

In 2025, Poland’s mergers and acquisitions (M&A) market is set for transformative shifts.

Global | Publication

The Mansion House Reforms: Will pension superfunds supercharge UK investment and M&A?

We outline the key features of the Mansion House Reforms and consider whether these superfunds could supercharge UK M&A and related investment activity.

United Kingdom | Publication

5 key drivers of M&A in 2025

1. More geo-political certainty

Last year was the year of elections, with over 100 democracies – home to around half the world’s population – choosing their political leaders. This level of political uncertainty inevitably had a moderating impact on economic activity and therefore M&A activity in 2024. As we enter 2025, we now expect greater political certainty for a number of years in many countries, including the US, the UK, India, Japan and the European Union. Should the geo-political sentiment also gradually become more positive, these elements would inevitably provide a positive stimulus to economic activity and therefore M&A activity.

2. Improved macro-economic sentiment

Central banks have been working to control inflation, which is now beginning to return to trend and target levels, and this has led to a turn in the interest rate cycle with continued monetary loosening expected throughout 2025. With inflation under control and interest rates returning to long term trend levels, this will give CEOs and private equity leaders more confidence around valuations and the broader economic outlook, which will potentially help drive the M&A market in 2025.

3. Regulatory loosening

A number of political leaders in some of the largest economies stood on a platform of regulatory loosening. We expect gradual moderation of the regulatory environment over the next few years in a number of the largest economies around the world – the US, Japan, the UK and India. This will create new M&A opportunities, which we expect CEOs and private equity leaders to act on so as to position their organizations for the future.

4. Availability of capital

Private equity continues to hold significant levels of “dry powder” and this, combined with a more creative approach to monetization, should spur further M&A activity from this important constituency in the M&A market. Corporate CEOs will look to position their organizations for the future and will have better access to capital from equity and debt markets.

5. Fast-emerging sectors

The emergence of fast developing sectors will create opportunities for M&A activity. The increasing pace of the energy transition agenda in all economies; the opportunities (and challenges) created by the emergence of artificial intelligence; the ageing population and the need for more complex healthcare; and the pace of technological change will all spur innovation and therefore M&A as organisations position their business for the future.