After a few cautious years, the global M&A landscape is experiencing a major shift. Interest rates are stabilizing, capital markets are recovering, and boardrooms are regaining confidence. Thus, dealmakers are back on the move.
In particular, PwC’s latest M&A outlook shows deal volume will rise in 2025 as companies pursue scale, innovation, and supply chain resilience. These moves reflect evolving growth strategies aimed at enhancing value creation and seizing new revenue opportunities. In other words, the race for competitive advantage is back, fueled by a mindset of continued growth.
M&A Outlook 2025: Expectations Are High | BCG
Whether you are an investor, strategist, or M&A advisor, this post can bring valuable insights. Here is what you will find here:
- Overview of the M&A market in 2025
- Top recent M&A 2025
- Emerging trends from recent deals
- Risks and challenges in 2025 deals
- Expert commentary on the 2025 M&A landscape
Look at the deals, dynamics, and disruptions shaping M&A dealmaking this year.
Overview of the M&A market in 2025
The following are the most critical factors contributing to the resurgence: industry-specific drivers, macroeconomic conditions, and regulatory landscapes.
Key sectors driving M&A activity
1. Technology
Innovation races, automation pushes, and AI integration shape where capital flows next.
The technology sector remains a dominant force in mergers and acquisitions, pushed by the ongoing demand for digital transformation, innovation, and automation. Thus, companies acquire cutting-edge technologies and intellectual property to stay competitive in a digital marketplace.
54% of global respondents report using AI-enabled tools or planning to adopt them within the next two years.
2. Healthcare and pharmaceuticals
Executives are doubling down on deals to fill portfolio gaps and stay competitive in evolving markets.
Portfolio gaps, supply chain uncertainties, and policy changes drive M&A in the health industry. Therefore, these elements are expected to lead to accelerated deal values and volumes, particularly in the U.S. and European markets.
86% of healthcare industry CEOs who completed a major acquisition in the past three years intend to pursue one or more additional deals within the next three years.
3. Financial services
Digital upgrades and market expansion strategies are driving consolidation among key players.
The financial sector is witnessing increased deal activity as institutions seek to enhance their digital capabilities and expand market share. So, technological advancements, regulatory shifts, and changing customer demands are key motivators for consolidation in this space.
4. Green energy
The transition to cleaner power sources is triggering bold moves in the sector despite political crosscurrents.
The green energy sector continues to be a significant driver of M&A activity in 2025, as companies aim for a sustainable future. Specifically, transformative shifts in geopolitics, energy security priorities, and market dynamics are propelling mergers and acquisitions in the energy, utilities, and resources sectors.
The Trump administration has introduced a policy environment that is more favorable to fossil fuels, with potential rollbacks of existing environmental regulations. Although this could accelerate investment in natural gas infrastructure and fossil fuel-based power generation, renewable energy is still expected to benefit from sustained long-term support.
Macroeconomic and regulatory influences
1. Interest rates and inflation
Lower borrowing costs and improved sentiment are reawakening the appetite for major investments.
Central banks’ efforts to control inflation are beginning to yield results, leading to expectations of continued monetary easing throughout 2025. This environment gives CEOs and private equity leaders greater confidence in valuations and the broader economic outlook, potentially driving M&A activity.
2. Regulatory environment
Looser rules are helping executives move forward with fewer constraints.
A trend toward regulatory loosening in major economies, including the U.S., Japan, the UK, and India, is creating new opportunities for M&A. This shift is anticipated to encourage leaders to pursue strategic acquisitions to position their organizations for further growth.
“Expected change in regulatory landscape and exuberance in AI will likely drive deal volume higher in 2025.”
— Alan Jones, US National TMT Deals Leader
3. Geopolitical stability
Despite uncertainty, many companies are pressing forward amid a complex global environment.
Geopolitical stability builds confidence in mergers and acquisitions. However, the landscape in 2025 remains complex. In particular, geopolitical risks appear due to economic sovereignty concerns and global rivalries, influencing investment decisions and corporate strategies.
Despite some ongoing uncertainties, the overall M&A environment in 2025 is buoyed by regulatory tailwinds, sector-specific growth, and renewed economic confidence. All this gives dealmakers solid ground to act boldly.
Top recent mergers and acquisitions in 2025
We organized the year’s most significant transactions into the following three categories:
- Mega deals. The largest and most valuable global acquisitions.
- Cross-border transactions. Strategic international expansions and global consolidations.
- Private equity moves. Key buyouts and investments by private equity markets.
This breakdown offers a practical lens through which investors, strategists, and M&A professionals can assess the market’s direction and discover strategic insights behind each major deal.
Mega deals
| Buyer | Target | Deal value | Strategic rationale | Status |
| Charter Communications | Cox Communications | $34.5B | Expand broadband and mobile services; enhance national footprint. | Announced |
| Alphabet Inc. | Wiz | $32B | Strengthen cloud security offerings; bolster Google Cloud’s competitive position. | Announced |
| xAI | X (formerly Twitter) | $33B | Integrate AI capabilities; consolidate Elon Musk’s ventures. | Completed |
| Cisco Systems | Splunk | $28B | Strengthen cybersecurity and observability solutions; expand enterprise offerings. | Completed |
| KKR | OSTTRA | $3.1B | Acquire post-trade services; expand financial market infrastructure capabilities. | Pending |
Cross-border transactions
| Buyer | Target | Deal value | Strategic rationale | Status |
| Synopsys(USA) | Ansys(USA) | $35B | Combine electronic design automation and simulation software. | Pending |
| Capital One(USA) | Discover Financial Services(USA) | $35B | Expand credit card operations and gain a payment network. | Pending |
| UniCredit(Italy) | Commerzbank(Germany) | Up to $15B | Strengthen UniCredit’s presence in Germany. | Announced |
| Masdar(UAE) | Terna Energy(Greece) | $2.7B | Grow renewable energy investments globally. | Completed |
| Shift4 Payments(USA) | Global Blue(Switzerland) | $2.5B | Broaden international payment processing footprint. | Pending |
Private equity moves
| Buyer (PE firm) | Target company | Deal value | Strategic rationale | Status |
| Warburg Pincus & Berkshire Partners | Ensemble Health Partners | Up to $12B | Expand the healthcare revenue cycle management services portfolio. | Pending |
| Bain Capital | YORK Holdings Co., Ltd | $5.37B | Strengthen presence in the Asian consumer goods and services market. | Completed |
| KKR & Stonepeak | Assura | ~$2B | Increase exposure to healthcare real estate amid rising demand. | Pending |
| H.I.G. Capital | Converge Technology Solutions | $910M | Enhance IT portfolio with cloud and cybersecurity capabilities. | Completed |
| RedBird Capital | Telegraph Media Group | ~$675M | Revitalize the media brand and expand the digital presence. | Completed |
These deals may pursue different purposes, whether expanding global reach, strengthening sector leadership, or reshaping portfolio companies. At the same time, they all reflect common goals: to optimize operational costs, drive revenue growth, and improve financial stability amid evolving conditions in the broader market.
Emerging key trends from recent deals
Here are the top deal-making M&A trends to watch this year:
1. ESG-driven acquisitions are on the rise
More companies want to do business with a conscience. Specifically, they buy firms that prioritize environmental care, social responsibility, and good governance. These acquisitions help improve service quality, strengthen core operations, and align with long-term sustainability goals.
A recent survey indicates that nearly 70% of institutional investors now consider ESG criteria as “important” or “very important” in their investment decisions.
2. Tech and AI deals are heating up
Artificial intelligence is changing the game for businesses everywhere. As a result, bigger companies are snapping up startups and specialists to strengthen their automation, data, and tech infrastructure skills. It is especially noticeable in cloud computing, semiconductors, and AI-powered software.
Notable large transactions include OpenAI’s $6.5 billion acquisition of io, an AI device startup founded by former Apple executive Jony Ive. This move aims to enhance OpenAI’s hardware capabilities while positioning the combined entity as a market-shaping force in AI hardware.
3. Pharma and biotech are teaming up strategically
With research getting more expensive and regulations tightening, pharmaceutical companies are joining forces through partnerships and acquisitions. In particular, many deals focus on getting access to breakthrough treatments, growing their drug pipelines, or exploring new medical fields faster.
Major announced transactions include Novartis’s planned acquisition of Regulus Therapeutics for up to $1.7 billion, aiming to strengthen its pipeline in RNA-targeted therapies.
4. Cross-border deals are making a strong comeback
Businesses look beyond their borders to find fresh ideas, diversify operations, and reach new customers. To facilitate this, teams use the services of virtual data room software companies, which make these complex international deals smoother and more secure.
According to Deloitte’s 2025 M&A Trends Survey, at least 85% of respondents have cross-border dealmaking near the top of their to-do lists for the new year.
Understanding these drivers can help leaders stay ahead of the curve and make more informed deal decisions.
Data rooms for M&A
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Risks and challenges in 2025 deals
Below, we highlight the key risks facing deals this year, explain their impact, and offer expert tips to help handle these complexities effectively.
| Risks and challenges | Explanation | Expert tip |
| Rising regulatory scrutiny | Some governments are intensifying scrutiny on deals, focusing on antitrust concerns and ESG-related disclosures.This adds complexity and creates potential delays, as firms must prove that deals don’t harm competition or violate emerging sustainability laws.This is particularly relevant for significant investments in sectors such as healthcare, tech, and digital infrastructure, where compliance and sustainability are under the microscope. | Engage regulatory, ESG, risk management, and compliance experts to identify potential hurdles and adapt the deal structure.Maintain transparent communication with regulators to build trust.Use a secure virtual data room to manage and share sensitive documentation and ensure audit-readiness. |
| Macroeconomic volatility | While inflation and interest rates are showing signs of stabilization, some volatility and market unpredictability remain.These factors can influence deal valuations and financing conditions, requiring flexibility from dealmakers. | Conduct comprehensive economic scenario analyses and stress tests on deal models.Build flexibility into deal terms, such as earn-outs or price adjustments, to manage valuation risks.Monitor shifts in market trends. |
| Cross-border political tensions | Increasing geopolitical tensions, such as U.S.-China trade conflicts and EU regulatory nationalism, create more obstacles for foreign investment and cross-border M&A, especially in strategic sectors like defense, semiconductors, and energy transition technologies.Political risk can slow approvals, cause additional due diligence, and lead to deal cancellations, especially in strategic sectors. | Use local counsel and political risk consultants to understand the landscape.Consider risk mitigation tools like political risk insurance, and prepare contingency plans for delays. |
| Post-deal integration complexities | Combining companies after a deal is often the hardest phase, with challenges around unifying cultures, systems, and processes.Failure to manage integration well can lead to value destruction, employee turnover, and customer dissatisfaction. | Invest in early and detailed integration planning with dedicated cross-functional teams.Prioritize culture alignment and clear communication to maintain morale and momentum post-deal. |
2025 brings renewed optimism across key sectors. At the same time, dealmakers cannot overlook some risks that accompany this environment.
To secure successful outcomes, companies must anticipate these risks, build flexibility into their deals, and plan carefully. Thus, you balance opportunity with caution to maximize value and minimize potential setbacks.
Expert commentary on the 2025 M&A landscape
Industry leaders from top advisory, legal, and financial firms offer valuable perspectives on the forces driving mergers and acquisitions this year.
“We are seeing the long-awaited recovery in M&A broadening out to more sectors and more countries, and with more large deals. All of this is giving ‘legs’ to the momentum that started already in 2024, but the potential for surprises, both good and bad, remains high. Dealmakers will need to keep a close eye on valuations, interest rates, and geopolitics in the year ahead.”
— Lucy Stapleton, Global Deals Leader, PwC UK
“An M&A recovery is overdue, but it may struggle to maintain its recent momentum at a time when long-term interest rates are rising and valuations are high. It’s a market that will distinguish top dealmakers from the rest. To be successful, they will need deep industry expertise and a laser focus on value.”
— Brian Levy, Global Deals Industries Leader, PwC United States
“Despite ongoing economic and political uncertainties, M&A activity in Europe remains strong, with a positive outlook for 2025. The study highlights an evolving landscape where dealmakers are adapting to shifting risk allocation strategies, emerging technologies, and regulatory complexities.”
— Louise Wallace, Head of the CMS Corporate/M&A Group
The M&A scene in 2025 is picking up speed, but with some bumps. There is real momentum across key industries and cross-border opportunities, but the winners will be those who stay nimble, know their sector inside out, and can handle the twists and turns of an unpredictable global economy.
Conclusion
So far, 2025 has delivered a welcome resurgence in M&A activity, with notable deals expanding across tech, energy, healthcare, and industrials. Strategic buyers and private equity dealmakers alike are leaning into opportunities driven by digital transformation, portfolio realignment, and cross-border expansion.
Yet, as emphasized by industry leaders, this recovery is not without friction. High market valuations, rising interest rates, and geopolitical uncertainties still shape deal strategy and execution. So, the most successful dealmakers in this environment will be those with sharp sector knowledge, disciplined value assessments, and the agility to shift as the landscape evolves.
As the year unfolds, stay informed and ready. The next wave of opportunities will favor those who understand where the market is now and where it is headed.
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