2025 Mergers and Acquisitions Forecast by Fasken

In recent years, there has been a noticeable shift in the world of mergers and acquisitions (M&A) between corporate and private equity dealmaking. Following a slowdown in M&A activity since the peak of 2021-2022, corporate buyers are now taking the lead by increasing their involvement in deals.

This reversal of trends is significant, as private equity firms had been dominating the M&A landscape in previous years. However, with the uncertainty caused by the global events of the past couple of years, corporate buyers have become more active in pursuing strategic acquisitions.

One of the key factors driving this shift is the availability of capital. Corporate buyers often have more liquidity and financial resources at their disposal compared to private equity firms. This puts them in a strong position to pursue M&A opportunities, especially in a market where valuations may be more favorable due to the economic impacts of recent events.

Additionally, corporate buyers may have strategic reasons for pursuing acquisitions that go beyond financial considerations. They may be looking to expand their market presence, diversify their product offerings, or acquire new technology and talent. These strategic motivations can drive corporate buyers to be more aggressive in pursuing M&A deals.

It’s important to note that while corporate buyers are currently more active in the M&A market, private equity firms still play a significant role. Both types of buyers bring unique advantages to the table, and the interplay between corporate and private equity dealmaking is an important dynamic to watch in the world of finance and securities.

Overall, the recent shift towards corporate dealmaking in the M&A landscape demonstrates the resilience and adaptability of companies in navigating challenging market conditions. As the market continues to evolve, it will be interesting to see how these trends develop and shape the future of dealmaking in the years to come.