2025 is shaping up to be a pivotal year for the global M&A market, with signs of recovery after years of uncertainty and economic challenges. The obstacles that have hindered deals in recent years – particularly high interest rates and regulatory uncertainty – are finally easing, paving the way for significant growth.
The global M&A market saw a modest recovery in 2024, with a 13% increase in the total value of deals compared to 2023, reaching $3.6 trillion. This growth, accompanied by a 9% rise in the number of transactions, demonstrates renewed momentum, driven by several key factors.
Driving Forces Behind the Recovery
Many analysts agree that the strategic realignment of companies is playing a central role in the M&A market's recovery. In the post-pandemic landscape, many businesses are revisiting their strategies and looking to divest assets to optimize their capital and operational structures. At the same time, new political landscapes in both the US and Europe are fostering a more favorable environment for M&A transactions, with policies encouraging strategic mergers and acquisitions.
Another significant driver of M&A activity is technological innovation. The introduction of advanced technologies, such as generative AI and automation solutions, is prompting businesses to seek new acquisition opportunities to stay competitive in a rapidly evolving market.
Key Regions: North America and Europe
North America and Europe are leading global growth in the M&A sector, with a particular focus on the technology and industrial sectors. Meanwhile, the Asia-Pacific region remains weaker due to persistent economic uncertainties and geopolitical tensions, which could slow recovery in that area.
The M&A Market in Italy
Italy, in particular, recorded an exceptional performance in 2024, with the value of strategic deals reaching $55 billion, marking a record 171% year-on-year increase. Transactions above $30 million rose by 32%, reflecting growing confidence in the market. The sectors that stood out during this recovery process were energy and natural resources, financial services, and telecommunications.
The combination of falling inflation, reduced interest rates, and stabilized company valuations in the second half of 2024 has strengthened expectations for an acceleration in M&A activity in 2025. This favorable economic backdrop has led to increased investor confidence, with many preparing to seize the opportunities presented by the market.
Challenges for 2025
Despite the positive outlook, businesses will need to manage a still-challenging environment, particularly when it comes to regulatory issues, especially in large-scale transactions. Antitrust regulations remain a significant hurdle for large mergers, and restrictions on foreign investments due to national security concerns could impact the completion of certain deals.
Additionally, evolving data protection and cybersecurity regulations could reshape the M&A landscape, pushing companies to integrate new security measures into their acquisition strategies.
van Berings' Role in the M&A Market
In this landscape of recovery and transformation, van Berings remains a crucial partner for companies looking to successfully steer the M&A market. With extensive experience in cross-border deals and a deep understanding of international regulations, our law firm supports businesses at every stage of the process: from strategic planning and due diligence to managing tax and regulatory complexities.
Our advisory services are particularly focused on managing risks related to antitrust regulations, data protection, and national security laws, which are critical areas in international M&A transactions. With a global vision and a tailored approach, van Berings helps businesses seize the opportunities offered by the M&A market, while ensuring the highest level of legal and tax compliance.
