{{item.videoDuration}}
{{item.title}}
{{item.text}}
{{item.videoDuration}}
{{item.title}}
{{item.text}}
The global M&A market may finally regain momentum after years of economic and geopolitical challenges. Early signs suggest that 2025 could mark a significant upswing: deals valued over $1bn increased by 17% in 2024, with higher average values, signalling renewed confidence at the top end of the market. However, with smaller and mid-sized deal volumes down 18% last year, and uncertainties still looming, the question remains: will 2025 be a breakout year for M&A or a continuation of the moderate status quo?
Three factors we expect to drive M&A activity in 2025
Recent momentum in the M&A market is being fuelled by several key factors, including an intense CEO focus on growth and transformation in an era of artificial intelligence (AI), greater availability of capital, and a surge in assets expected to come to market – from private equity portfolio companies to corporate non-core divestitures.
Our optimism for increased M&A activity in 2025 stems from the growing imperative for businesses to pursue deals in order to achieve strategic and economic objectives. Three key factors are driving this imperative, underscoring why the M&A landscape is poised for growth in the year ahead.
"In 2025, the convergence of AI-driven transformation, geopolitical shifts, and evolving capital dynamics will shape a new era for M&A, requiring dealmakers to balance opportunity with uncertainty."
Marc SchmidliPartner, Deals Leader, PwC Switzerland
Two reasons that could challenge M&A momentum in 2025
Despite growing momentum, dealmakers must face significant uncertainties. Volatile geopolitics, including policy shifts following the 2024 US elections and the return of a Trump administration, could disrupt markets globally. Rising long-term interest rates, despite contained inflation and recent central bank rate cuts, may challenge refinancing and returns.
The two main challenges we see are:
Geopolitics and the ‘Trump effect’: Global political instability, elections in major economies, the Russia-Ukraine war, and Middle East tensions continue to shape the M&A landscape. The new US administration’s policies, including potential deregulation and tax cuts, could boost dealmaking, but national security and data-driven transactions may face stricter scrutiny. Additionally, protectionist trade policies and tariffs pose a risk of sparking inflation and higher interest rates. In contrast, sector-specific policy changes may act as catalysts for deals.
Interest rates: While central bank rate cuts in 2024, including a 100-basis-point reduction by the US Federal Reserve, have fuelled M&A momentum, rising long-term rates are creating uncertainty for 2025. Higher rates and slowing growth could challenge deal economics.
Take aways for dealmakers
Successful dealmakers will handle geopolitical challenges, incorporating them into due diligence and deal scorecards, while carefully evaluating transactions involving US strategic technology, infrastructure, or personal data.
To tackle the complex M&A landscape, dealmakers must address critical questions:
- How will AI impact the target company’s business model and the cost of its implementation?
- How can value creation meet return expectations amid high valuations and slowing growth?
- Are there alternatives in case of failed refinancing or delayed deals due to excessive debt?
- Where are the best global opportunities, balancing corporate strategy with geopolitical risk?
- What are the national security and geopolitical implications of the deal?
Gain an in-depth understanding of the special dynamics in the M&A landscape in 2025 with our blog series. Explore our detailed analysis and predictions on dealmaking trends and strategies across sectors and get valuable knowledge to navigate this transformative year.
"M&A recovery is overdue, but it may struggle to maintain its recent momentum 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."
Industry takeaways – developing
Learn more about the key trends driving M&A activity globally in 2025. For potential investment hotspots check out our global industry-specific takeaways.
And how about the situation in Switzerland? In the next few weeks, our industry experts will be sharing their views and expectations of M&A trends in Switzerland ‒ so please stay tuned.
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
{{contentList.loadingText}}
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
{{filterContent.facetedTitle}}
{{contentList.dataService.numberHits}} {{contentList.dataService.numberHits == 1 ? 'result' : 'results'}}
{{contentList.loadingText}}
Contact us
Marc Schmidli