Global M&A Deal Volumes to Surpass $4 Trillion by 2025
Global M&A deal volumes are expected to exceed $4 trillion in 2025, marking the highest level in four years. This surge is fueled by anticipated deregulation, lower corporate taxes, and a pro-business approach under the leadership of U.S. President-elect Donald Trump. As of December 19, the total M&A value has already reached $3.45 trillion, showing a 15% increase from the previous year and rebounding from a low point of $3 trillion in 2023.
Experts believe that Trump’s election will create a more favorable environment for corporate mergers and acquisitions, as his administration is expected to ease antitrust enforcement, paving the way for stalled tie-ups that struggled under the Biden administration. The recent appointment of Andrew Ferguson as the head of the Federal Trade Commission is seen as a positive step that could reduce regulatory barriers to large mergers.
In the U.S., M&A volumes rose by 10% to $1.55 trillion in 2024, while Europe and Asia Pacific experienced growth rates of 22% and 11% respectively. Private equity firms are also set to benefit from recent interest rate cuts, an improved financing landscape, and a resurgence in initial public offerings (IPOs), enabling them to capitalize on large portfolio companies.
Leveraged buyout (LBO) volumes have seen a significant increase of 35%, reaching $600.8 billion. Major firms like Blackstone and Silver Lake have been driving this growth with significant acquisitions, such as Blackstone’s $16 billion deal for AirTrunk and Silver Lake’s $13 billion takeover of Endeavor Group.
Although there are some cautious voices among investment bankers, citing concerns about potential inflationary pressures due to planned tariffs under Trump’s presidency, the overall outlook for U.S. corporate earnings is positive. Cross-border M&A activity is also expected to rise as foreign buyers target U.S. companies.
The technology sector continues to be a focal point, with over $534 billion in global M&A activity this year. There is a growing appetite for large, transformative deals in this sector, and as deal volumes near pre-pandemic levels, dealmakers are gearing up for an expected surge in transactions as we move through 2025.
