Dealmakers worldwide remain optimistic about cross-border M&A in 2025 despite geopolitical challenges

Global confidence in cross-border mergers and acquisitions (M&A) remains unwavering in the face of geopolitical challenges, a recent report titled ‘Dealonomics’ in collaboration with Bayes Business School disclosed. The study disclosed that nearly 74% of dealmakers maintain a positive outlook on the M&A landscape in the upcoming year. Confidence levels were notably higher in key markets like the UK and the US, standing at 92% and 98%, respectively, notwithstanding the implementation of tariffs by the Trump administration in early April.

The research indicated that the UK ranks as the second most appealing market for cross-border deals, with 57% of participants expressing strong optimism regarding M&A prospects in the country over the ensuing 12 months – a figure more than double the average across other markets. The robust sentiment towards the UK is consistent with ongoing deal activities, with the UK securing the second spot in global deal volume and average deal value, outranked only by the US.

Analysis of the top three markets by deal volume, average deal value, and acquirer performance post-deal for the 2018-2024 period inclusive identified the United States, the United Kingdom, and the Nordics as prominent players in the global M&A arena. The figures illustrate the substantial role these markets play in fostering cross-border M&A transactions.

Nonetheless, the report shed light on critical blind spots that could jeopardize long-term value creation within the M&A landscape. Notably, 63% of respondents highlighted post-deal integration as the most frequently disregarded aspect in cross-border M&A endeavors. Despite the strides made in artificial intelligence (AI) and automation in other facets of deal-making, only 13% of participants believed AI alone could enhance integration processes, emphasizing the indispensable role of expert human guidance alongside modern technology.

Nonetheless, there was a consensus amongst 60% of dealmakers that AI and automation could refine due diligence procedures, a percentage that peaked at 68% among senior dealmakers but dipped to 41% among Vice President-level respondents. This discrepancy suggests that more experienced decision-makers see greater potential in leveraging AI to complement human expertise in due diligence efforts.

The research also outlined dealmakers’ anticipations for industry trends in the forthcoming five years, with the technology, media, and communications (TMC) sector emerging as a frontrunner. Approximately 75% of participants foretell heightened activity in the TMC sphere, underscoring the sector’s pivotal role in catalyzing M&A transactions in the 2025-2030 timeframe.