The outlook for global deal-making

In 2024, the global mergers and acquisitions (M&A) market saw a 10% rise in activity compared to 2023, thanks to easing inflation, interest rate cuts, and strategic corporate shifts. Despite challenges like geopolitical tensions and regulatory changes, companies are taking a long-term view, making investment decisions that span decades. Experts forecast that 2025 will see similar or slightly higher growth, particularly in sectors such as energy, healthcare, consumer goods, and technology, as companies increasingly recognize the value of scale and cross-border transactions. Private equity activity is also expected to grow, largely depending on a more favorable IPO market that allows for smoother exits and better valuation. As generative AI continues to evolve, its impact on M&A is expected to unfold gradually, beginning with investments and partnerships before progressing to acquisitions as the technology advances and market leaders emerge.