Surge in Corporate M&A Activity Expected in 2025

Mergers and Acquisitions | January 16, 2025

Surge in Corporate M&A Activity Expected in 2025

Global mergers and acquisitions (M&A) achieved a significant rise in completed deals in 2024, led by a resurgence in large transactions driving momentum into 2025, according to research from WTW’s Quarterly Deal Performance Monitor (QDPM).

Isaac M. O'Bannon

Global mergers and acquisitions (M&A) achieved a significant rise in completed deals in 2024, led by a resurgence in large transactions driving momentum into 2025, according to research from WTW’s Quarterly Deal Performance Monitor (QDPM).

Run in partnership with the M&A Research Centre at Bayes Business School, the full year figures reveal 710 deals valued over $100 million were completed globally during the last 12 months. This compares to 619 transactions in 2023, representing a 15% increase in volume.

The dramatic uptick in large transactions (valued between $1 billion and $10 billion) was especially pronounced during the second half of 2024, with 99 completed deals representing a 36% rise compared to the same period in 2023. Over a 12 month-period, large deals were up 21% in 2024 at 162 deals compared to 134 in 2023. Meanwhile, 15 megadeals (valued at over $10 billion) were completed worldwide last year, compared to 11 in 2023.

Buyers have withstood an extended period of volatility and challenges on many fronts”

David Dean | Managing director, M&A consulting, WTW

“Buyers have withstood an extended period of volatility and challenges on many fronts,” said David Dean, managing director, M&A consulting, WTW. “With the underlying drivers of strategic growth and desire for new capabilities still in place, we expect increased demand and strong balance sheets will drive more M&A activity in 2025.”

North America acquirers closed 361 deals in 2024, 14% more than the 317 transactions completed the previous year. Deal numbers were also up by 32% in Europe, from 117 completions in 2023 to 155 last year, and in Asia Pacific where 163 deals were completed last year compared to 155 in 2023.

In a year of strong equity returns, 37% of companies completing deals still managed to outperform the wider market based on share price performance. However, the aggregate performance of all deals reveals the majority of acquirers underperformed the market[1] by -10.9pp (percentage points) for completed acquisitions valued over $100 million during 2024.

Global M&A deals – Annual performance

 2015201620172018201920202021202220232024
Average Annual Performance (pp)*+10.1+5.4-1.3-3.0-5.0-1.9+1.4-0.8-7.2-10.9

Based on activity during the second half of 2024, Europe was the only region to resist the negative trend by recording a positive performance of +0.7pp, providing a welcome boost to dealmakers in the region expecting a busy year ahead. Buyers in North America and Asia-Pacific underperformed their own regional indices during the same period by -8.7pp and -11.2pp respectively.

“Despite improving financing conditions and a new U.S. administration signaling looser regulatory scrutiny, completing complex M&A transactions will remain challenging this year. There are many ‘known unknowns’ that dealmakers face including the risk of new tariffs and policies refueling inflation, affecting both supply chain stability and consumer prices,” said Dean.

“We expect buyers’ behavior will also be influenced by the tremendous growth and influence of private equity on M&A. PE firms, facing press to deploy trillions in dry powder, will leverage their experience of executing complex deals to drive aggressive timelines, forcing corporate buyers to compete with greater efficiency in their pursuit of closing strategic deals,” said Dean.

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