M&A market poised for comeback in 2025 as headwinds ease, Bain & Company finds
- Editor
- Feb 4
- 2 min read
What's Happening: Bain & Company's Global M&A Report 2025 predicts a resurgence in M&A activity as interest rates and regulatory challenges are expected to ease. The report suggests that technology disruption, post-globalization shifts, and changing profit pools will drive dealmaking in the coming year.
The Key Moves:
Interest rates and regulatory challenges, the two biggest inhibitors to recent deals, are expected to ease in 2025.
Technology disruption, post-globalization, and shifting profit pools will be key drivers for M&A and divestitures.
Generative AI adoption in M&A is increasing, with one in three practitioners expected to use it by the end of the year.
By The Numbers :
21% of M&A practitioners are currently using generative AI, up from 16% a year ago.
60% of consumer products executives expect to sell assets over the next three years.
The energy sector engaged in more than $400 billion in deals in 2024, a three-year record.
Key Quotes:
"M&A activity tends to be cyclical, and we believe the market is poised for an upturn," said Les Baird, partner at Bain & Company and head of the firm's global M&A and Divestitures practice.
"Generative AI will have a profound impact on the way deals get done," said Suzanne Kumar, executive vice president of Bain & Company's global M&A and Divestitures practice.
"Early adopters are gaining an advantage by getting to better insights faster. Late followers will be outbid for good deals and find themselves staying too long in processes for bad deals."
The Bottom Line: The M&A market is expected to rebound in 2025 as key obstacles diminish. Technology, particularly generative AI, will play a crucial role in reshaping dealmaking processes. Companies across various sectors are positioning themselves for strategic transformations through M&A activities.
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