This report features insights from 200 senior executives from multinational corporates, large private equity (PE) firms and major investment banks to highlight global M&A trends, opportunities and risks in 2025.

Key findings include:

New era of volatility unsettles dealmakers

When surveyed in Q1, most respondents (53 percent) expected their own organization’s appetite for M&A to increase in 2025 compared to last year. However, the market turmoil caused by “reciprocal tariff” announcements impacted sentiment negatively. In response to a follow-up question on this subject, over two-thirds of respondents said the escalation in trade tensions had caused their appetite for M&A to decrease. In addition, dealmakers are having to navigate other risks, with supply chain disruption, local economic risk and financing-related challenges also weighing heavily on their minds.

Dealmakers move quickly to integrate AI

Over half of survey participants (51 percent) have acquired an AI business. And respondents have applied the technology to various parts of their M&A processes, from deal sourcing to due diligence. Moreover, 46 percent report that they are looking to acquire an AI business in the near term. Both of these figures speak to the rapid adoption of this transformative technology in a short period of time. In our previous 2024 study, just 33 percent of respondents said they were looking to acquire an AI business.

Private credit helps to fill financing gap

35 percent of respondents expect it to become more difficult to secure M&A-related financing in 2025 compared with 2024. As far as types of financing are concerned, private credit is expected to grow in popularity in 2025. This is the case particularly in markets where economic uncertainty and political volatility may give traditional lenders pause. Overall, a quarter of respondents believe private credit will be the single most important form of financing to be employed in the market over the next two years for M&A deals.

Private equity ready to put dry powder to work

Survey participants expect domestic PE buyers to be among the most active types of acquirers in deal markets in 2025 (cited by 44 percent, taking our global baseline). Their presence will be felt across all markets, with a particular emphasis on South and Southeast Asia (49 percent). Their international PE peers, meanwhile, are expected to be especially active in neighboring East Asia (41 percent). This is followed by Europe (also 41 percent) and Australia and New Zealand (43 percent).

Popularity of deal insurance set to soar

Overall, almost two-thirds of respondents (65 percent) expect the use of R&W/W&I insurance to increase in 2025 compared to 2024. This includes 37 percent who expect that increase to be significant (up from 26 percent in our previous study). This trend is observable in every market around the world. However, it is expected to be most pronounced in the Middle East, with 47 percent of respondents forecasting a significant increase in the use of R&W/W&I insurance in the region.

For more information on the global M&A trends highlighted by this report, visit nortonrosefulbright.com