New York, February 24, 2025- The mergers and acquisitions (M&A) market is constantly changing, influenced by economic cycles, regulatory changes, and shifting sector trends. As we enter 2025, dealmakers must use the lessons of the past year to manage new opportunities and challenges.

The past year saw renewed M&A activity, with global deal values climbing 16.4% year-over-year. Sectors like IT and B2C led the charge, while private equity sponsors remained highly active, executing add-ons and take-private transactions. However, the regulatory environment became more complex, with increased antitrust scrutiny affecting major deals.

This report provides a thorough analysis of the key M&A trends from 2024 and strategic insights to position your deals for success in the coming year. By analyzing sector-specific trends, deal drivers, and regulatory shifts, we provide you with the insights needed to make informed decisions and seize emerging M&A opportunities.

2024 M&A Review

Deals Are Back

Global M&A value rose 16.4% year-over-year, driven by IT ($740B) and B2C (44% value growth). Europe’s lower valuations (8.3x EBITDA vs. the US’s 10.3x) fueled cross-border activity.

PE’s Playbook

Sponsors drove 34.6% of deals, focusing on add-ons and take-privates like Apollo’s $6.7B buy of Pactiv Evergreen.

Regulatory Wildcards

Antitrust scrutiny is rising, with the FTC blocking Kroger-Albertsons, while the CMA greenlit Vodafone-Three UK.

The takeaway? Stability has returned—but 2025’s rules are new.

This isn’t just data—it’s your roadmap. Ask yourself:

• “How do I exploit the US-EU valuation gap?” North American buyers are eyeing European targets (8.3x EBITDA) for discounted growth.
• “Which sectors are heating up?” IT (software/AI) and materials & resources (chemicals, packaging) dominated 2024—and will lead 2025.
• “Are my deals regulator-proof?” Antitrust scrutiny is rising, but proactive sell-side prep can slash risks.  ¹

Bottom line: Miss these trends, and you’ll chase 2025’s opportunities instead of leading them.

Don’t take our word for it. Here’s how industry leaders see it:

“The US will drive 2025’s M&A growth. Post-election, we’re already seeing larger deals—and Europe could follow if political uncertainty eases.”

— Rowan Bamford, President of Liberty GTS

“AI is transforming due diligence, but deal timelines have grown 32% since 2020. Firms that ignore tech tools risk falling further behind.”

— Deven Monga, VP of Sales at Ideals VDR

What’s Next?

2025 won’t just be busy—it’ll be strategic. Expect:

• Rate Cuts & AI Gold Rushes: Declining interest rates and AI adoption (e.g., Recursion’s $688M Excelentia buy) will fuel deals.
• Healthcare’s Comeback: With regulatory easing likely, PE eyes healthcare services and AI-driven drug discovery.
• PE’s $2.5T Dry Powder: Pent-up exits and carve-outs (like Carlsberg’s Britvic acquisition) will dominate headlines.

Your move: Align your pipeline with sectors primed for growth—and lock in targets before multiples rise.

2025 M&A Outlook

Market Resurgence

After a period of cautious calm, the M&A market is expected to rebound strongly in 2025. Deal activity should increase significantly, driven by private equity’s need for liquidity and capital deployment, a recovery in financing markets, and businesses pursuing growth strategies. Investors, too, are seeking opportunities in this exciting environment.

Drivers of Growth

Baird’s 2025 M&A Outlook reinforces this positive trend, forecasting an acceleration in global activity. This includes private equity firms’ renewed focus on liquidity events, capital deployment, and improving financing markets. Despite ongoing challenges in deal valuations, these factors create a fertile ground for M&A transactions, particularly in the technology and industrial sectors.

Emerging Opportunities

The anticipated rise in M&A activity presents both challenges and opportunities. While valuations remain a key consideration, the combination of available capital, strategic positioning, and improving market conditions points to a promising year for dealmakers. Success requires an informed approach.

The M&A landscape is evolving rapidly. By staying informed, adapting to market changes, and proactively managing risks, you can capitalize on emerging opportunities and drive success in this dynamic environment.

• Stay Informed: Keep track of regulatory developments and industry-specific risks.
• Align Your Strategies: Position your pipeline with sectors primed for growth.
• Mitigate Risks: Prepare for market volatility and regulatory changes.

Stay Informed

The M&A market is heating up – don’t get burned! Stay informed with our expert insights and analysis at https://maadvisor.com/maalerts. Ready to make your next move? Contact us at https://maadvisor.com for personalized M&A advisory services.

Stay tuned for more M&A Alerts covering the latest trends, deals, and research shaping the industry! Stay in the know, subscribe to M&A Alerts NOW. Click here.

Baird’s Expertise

Baird Global Investment Banking, with decades of experience, offers worldwide M&A advisory. Recent deals include advising a US industrial conglomerate’s $2B acquisition of a European clean-tech firm and an Asian tech giant’s investment in a Silicon Valley AI startup. For detailed insights into regional statistics, sector analyses, and financing strategies, download the report here: Baird Global Investment Banking – 2025 M&A Outlook