M&A trends to watch in 2025: Megadeals, AI & Cross-Border Activity

M&A deal volume is expected to hit $4 trillion in 2025, amid a dynamic environment driven by factors such as regulatory reforms, technological advancements, and IPOs.

As a founder, investor, or dealmaker, staying informed is key to leveraging these opportunities effectively.

"The equity markets are in all-time high territory which is injecting M&A enthusiasm. There’s also a strong sense of confidence across US corporates that the market will be more accommodating, deal-friendly with less antitrust headwinds in the next couple of years. That’s providing a further catalyst to M&A.", said Eamon Brabazon, co-head of global M&A, Bank of America Corp.

Here are five M&A trends shaping the deal-making landscape in 2025.

Trend #1: Resurgence of megadeals

Favorable policy shifts, including reduced corporate taxes and streamlined regulations, are laying the groundwork for large-scale mergers and acquisitions.

“Setting aside 2021, next year could be one of the best of the last 10 years because there wasn’t a lot of volatility in volume over the last decade,” said Jay Hofmann, co-head of M&A for North America at JPMorgan Chase, to the news agency Reuters.

According to the Harvard Law School Forum of Corporate Governance:

"The impending return of President-elect Donald Trump to the White House, with the Republican party having majorities in both houses of the U.S. Congress, is expected to bring a more business-friendly, deregulatory approach to policymaking, and further solidifies widespread expectations among market participants that M&A activity will increase in 2025."

What to focus on as a founder?

Digital businesses have an opportunity to secure strong valuations as financial sponsors seek to expand their private equity portfolio companies. By getting ready early and aligning with strategic buyers, you can leverage the environment and get a good deal for your company this year.

Trend #2: Increased private equity exits

Private equity (PE) firms are expected to double their exit activity in 2025, offering a wealth of opportunities for strategic buyers and secondary buyouts. The convergence of favorable market conditions—including open IPO markets and reduced capital costs—has primed many 2021-vintage investments for divestment.

Martin Brand, head of North America private equity at Blackstone, said to Reuters:

“The deals that have performed well will be ready for an exit.” This marks a critical period for founders and investors to evaluate their strategic options, as PE-backed businesses re-enter the market.

According to PwC, "the recovering deals market could get a lift from private equity-backed companies as early as the beginning of 2025 as general partners respond to growing pressure to return capital to investors."

"PwC's analysis of PitchBook Data, Inc. found that approximately 4,000 to 6,500 private equity exits have been delayed over the last two years due to inflation and a rapid rise in interest rates. Now there’s growing pressure from investors to return capital."

What to focus on as a founder?

The private equity influx into the market means competition but also an opportunity to show off your business model. A well-crafted growth story and operational readiness will be key to stand out.

Trend #3: Cross-border M&A activity growth

Globalization continues to influence the M&A landscape and cross-border transactions will be a part of it. Favorable economic policies, valuation discrepancies, and the need for geographic diversification drive companies to seek opportunities beyond their borders.

Cross-border M&A enables businesses to tap into new markets, capitalize on growth opportunities, and access cost efficiencies. For founders, this trend underscores the importance of understanding international market dynamics and being prepared to navigate complex deal structures.

According to Boopos advisors:

“We are seeing strong momentum in cross-border M&A across EMEA and the Americas. Software businesses, by their nature—asset-light and highly scalable—have historically thrived in cross-regional transactions, and 2025 is set to be no different”.

What to focus on as a founder?

Founders can focus on understanding regulations in the target markets, including foreign investment rules, tax policies, and other compliance obligations. 

Engaging advisors with expertise in cross-border M&A can help identify risks that may compromise the deal.

Trend #4: Technology and AI as M&A drivers

The rapid evolution of AI is reshaping M&A strategies across industries. Companies are aggressively pursuing acquisitions to bolster their digital capabilities, address gaps in innovation, and gain a competitive edge.

Goldman Sachs observes that most AI-related M&A activity currently occurs at the infrastructure and platform levels, with a new wave of applications driving transformational deals in 2025. Businesses that successfully integrate AI are expected to unlock new efficiencies and market opportunities, further fueling acquisition activity.

"Salesforce acquired Own, whose tools enable organizations to protect mission-critical data while generating deeper insights, and IBM announced its intent to acquire HashiCorp to create a comprehensive end-to-end hybrid cloud platform built for AI-driven complexity", noted Goldman Sachs in the 2025 M&A Outlook.

What to focus on as a founder?

For sellers, particularly in the technology sector, this means getting your business seen as a leader in innovation. Showcasing scalable technology, proprietary data, and AI integration will make your business an attractive target.

Trend #5: Regulatory environment and its impact on M&A

Shifting regulatory landscapes, particularly in the U.S., are poised to shape M&A strategies in 2025. However, while this will be a good year for deal activity, the changes in guidelines and antitrust laws will impact transaction timelines and deal structures.

Andrew Ferguson, the new FTC Chairman, "is expected to go easier on mergers than the agency’s current chief, Lina Khan. But he could take a similarly tough approach to policing Big Tech", said The New York Times.

What to focus on as a founder?

To mitigate risk, founders should get ahead of the curve and engage with experienced advisors to align their strategy with the changing regulations. By staying on top of economic data and market dynamics, sellers can reduce issues and make the transaction smooth.

Strategizing for M&A success in 2025

The M&A landscape in 2025 offers an opportunity for founders to achieve strong valuations, but success requires preparation and expert execution.

By staying ahead of trends, positioning your business effectively, and working with experienced advisors, you can maximize value and navigate the complexities of the deal process.

Here’s how you can position your business for success:

• Recap the trends: Stay informed and align your strategy with these emerging opportunities.
• Plan strategically: Develop a clear growth narrative, strengthen your financials, and prepare for regulatory scrutiny,
• Engage expert advisory: Partnering with an investment bank can help you maximize value and ensure a seamless transaction

If you're a founder considering an exit through M&A, our team can help. We provide tailored, data-driven strategies to maximize value. Contact us for a personalized assessment.