The M&A (mergers and acquisitions) market is expected to regain momentum in 2025.
This is the view of the law firm Clifford Chance in its market outlook for 2025.
A renewed focus on growth and a more stable economic environment are boosting investor confidence worldwide. Strategic actions by business leaders and increasing involvement from private investors are set to drive the market forward, according to Clifford Chance.
Flexibility is crucial to navigating the complex and rapidly evolving M&A market and to seizing opportunities for growth and innovation.
“We anticipate strong and steady activity throughout 2025”, says Sarah Jones, Global Head of Corporate (New York) at Clifford Chance. “In the U.S. and Europe, we are seeing significant increases, while regions like the Middle East remain highly active with both inbound and outbound deals. Cross-border deals are also on the rise as companies aim to grow and consolidate, mitigating risks posed by geopolitical and regulatory uncertainties. These deals will enhance market value in 2025.”
“At the same time, challenges in closing deals are becoming harder to predict”, Jones continues. “For example, U.S. government policy will be critical—not just for American deals but for global M&A. There are indications of reduced regulatory intervention, such as in competition law and foreign investment, but we must remain vigilant.”
“In 2025, private investors will play a major role in driving M&A activity”, says Catherine Freeman, M&A Senior Associate (London) at Clifford Chance. “On the sell side, investors will continue to focus on returns. On the buy side, they have significant financial resources ready to deploy. We expect simpler deals in 2025 as market conditions stabilize, marking a shift from the complex structures seen in recent years.”
M&A Trends for 2025
Clifford Chance identifies five key trends for the upcoming year in dealmaking:
1. Regulation remains central
Regulatory challenges will continue to pose significant obstacles for M&A deals. Securing approvals is becoming increasingly difficult and unpredictable. However, a global shift toward growth-oriented policies could ease the completion of major deals.
2. The impact of AI and digital infrastructure
The rise of generative AI is boosting valuations across the AI industry. Companies are competing to launch groundbreaking AI products, expand digital infrastructure, and leverage AI to enhance productivity and maximize data value. The influence of AI will extend to M&A activity across various sectors, not just technology.
3. Geopolitics continues to shape cross-border deals
In 2024, uncertainties around elections and global tensions created an unpredictable M&A market. In 2025, geopolitics will remain a significant factor as companies worldwide diversify, reduce reliance on specific markets, and adjust supply chains to navigate new trade barriers.
4. Private capital bridges valuation gaps
High interest rates and market uncertainties have led to valuation gaps between buyers and sellers, complicating deals. As the economy stabilizes in 2025, more assets will come to market, driving activity and increasing investor confidence.
5. Companies focus on scaling and consolidation
To stay competitive and achieve sustained growth, companies will prioritize scaling and consolidation in 2025. This shift is often a necessity rather than a choice, driven by the need for innovation, navigating complex regulations, managing risks, and optimizing resources.
Read the full M&A market outlook by Clifford Chance here.
