Norton Rose Fulbright and Mergermarket publish third global M&A trends report

Global law firm Norton Rose Fulbright and Mergermarket have recently published their latest report on global mergers and acquisitions (M&A) trends and risks, demonstrating that disagreements over tariffs are impacting the interest in M&A deals.

According to the report, a significant portion of respondents noted that ongoing trade disputes and tariffs have resulted in a decreased appetite for M&A activities. Although 53% of respondents anticipated a surge in demand for M&A in the first quarter of 2025, over two-thirds of the participants acknowledged that trade tensions have had a dampening effect on M&A interest within their organizations.

Raj Karia, who serves as the global head of corporate, M&A, and securities at Norton Rose Fulbright, emphasized the evolving approach companies are adopting towards M&A transactions. He highlighted that clients are now focusing more on careful and strategic planning when engaging in M&A deals. Factors such as trade tensions, financial pressures, and regulatory concerns have considerably influenced the structuring and execution of these transactions.

The research also indicated a predicted increase in the utilization of representations and warranties insurance for M&A deals, with nearly 65% of respondents expecting a rise compared to the previous year. A sizable portion of participants, particularly over 45% from the Middle East and South and Southeast Asia, forecasted a significant spike in the use of this insurance product.

In terms of technology integration in M&A processes, the report highlighted that more than half of the respondents have acquired artificial intelligence (AI) companies, leveraging AI capabilities for activities like deal sourcing and due diligence. Additionally, 46% of the participants expressed their intentions to secure an AI enterprise in the near future to enhance their M&A operations.

The report projected that domestic strategic buyers would emerge as the primary acquirers in 2025, especially in emerging markets like Latin America, Africa, and South and Southeast Asia. Moreover, a quarter of the respondents believed that private credit would play a crucial role in M&A financing over the next two years, while 35% anticipated challenges in securing M&A funding compared to the previous year.

Private equity buyers are also expected to play an active role in the M&A landscape, as indicated by 44% of respondents. These buyers are anticipated to be particularly prevalent in regions like South and Southeast Asia, East Asia, Europe, Australia, and New Zealand.

The insights presented in the “Global M&A trends and risks report” were gathered from feedback provided by 200 executives during the first and second quarters of 2025. The shifting dynamics and challenges in the global M&A landscape underscore the importance of strategic planning and adaptation to navigate the evolving market conditions effectively.