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CFO

Dealmakers are ready for a big 2025

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Following a brisker pace for M&A transactions last year, dealmakers around the world appear staunchly enthusiastic about their prospects for 2025.

A vast majority (87%) of the 419 global M&A professionals surveyed by SS&C Intralinks and Reuters Events said they expected deal and financing activity to grow this year. In a corresponding survey a year ago, only about half of respondents felt similarly.

The survey participants — from corporations, private equity firms, investment banks and advisory firms — were significantly optimistic about upcoming deal prospects in each of four global regions.

In North America, 38% of those polled said they anticipated the level of M&A and financing activity to rise “significantly” this year, while 44% are looking for “somewhat” of an increase. The most bullish region was Asia-Pacific, where the corresponding percentages were 49% and 46%.

The bullish sentiment reflects a market that’s shifting somewhat away from transactions involving distressed assets and businesses, according to SS&C’s survey report. Only 14% of respondents said they’d likely be involved in such deals in 2025, compared with 45% who suggested so last year.

Additionally, the report said, there is now much less opportunity expected in restructuring or turning around distressed businesses.

“Evidently, the soft economic landing felt in the past year and subsiding recession fears have translated to business confidence moving forward,” SS&C wrote.

Of course, even in times of plenty M&A deals are often difficult to pull off. In 2025, regulatory issues and political instability are expected to be the main challenges.

The research revealed that PE firms are more optimistic than corporate M&A professionals, with 45% and 33%, respectively, saying deal activity will increase significantly this year.

In addition to being more plentiful, deals are expected to trend larger this year. Almost a third (31%) of respondents said they expect to undertake deals worth more than $10 billion, compared to just 8% in last year’s survey.

Further, 58% of survey participants said they’ll be involved in deals worth $2 billion to $10 billion, up from 43% a year ago. And where last year 93% of dealmakers said they expected to work on transactions valued at less than $2 billion, his year just 43% said the same.

Another expected 2025 trend is an increase in M&A as the deal of choice for acquirers, which are by comparison pulling away from other transactions such as buyouts, add-ons, joint ventures and strategic alliances.

Unsurprisingly, digital transformation was cited as the largest driver for M&A/financing activity in 2025. “An organization’s ability to embrace new, transformative technologies quickly and have the financial firepower to bolster capabilities — be it through acquisition or development — is critical for the year ahead,” SS&C opined.

Another new M&A report, from EY, listed some other key deal drivers, including President Trump’s pro-business agenda and an expected “lighter touch” for regulatory and tax policies under the new administration.

Other factors helping to spark interest in deals include a substantial amount of uninvested capital, attractive M&A valuations driven by a reduced cost of debt and companies’ rapidly growing data needs related to AI adoption, EY said.

With all of that in play, EY counseled dealmakers to be aggressive. “Our advice: Don’t just play defense,” said Mitch Berlin, EY Americas vice chair, strategy and transactions. “Actively seek out targets, as valuations are coming down well below their 2021 peak. This is a moment to be bold and seize the opportunities the dynamic market presents.”

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