Megadeals boost deal volume 25% in 1H25 as dealmakers wrestle macro headwinds in mid-market
- Editor
- Jun 24
- 1 min read
Whats Happening:
Global M&A deal volume surged 25% to $2 trillion in the first half of 2025, driven by megadeals in the TMT sector. However, mid-market dealmaking slowed significantly, with deal count dropping 16% to a 20-year low. Dealmakers faced challenges from tariffs, stalled interest rates, and geopolitical uncertainties, leading to a reassessment of valuations and deal strategies.
Key Moves:
Global M&A volume rose 25% to $2 trillion in 1H25
Deal count dropped 16% to a 20-year low
Mega TMT deals drove growth, including OpenAI's $40 billion raise
By The Numbers:
North America led with 49% of global M&A volume
APAC posted a record $572 billion in M&A, doubling year-on-year
Middle East M&A volume up 51% year-on-year to EUR 32 billion
Key Quotes:
"Dealmakers began 2025 hoping to compress three years of M&A into one. Although March brought a burst of large-cap deals, optimism faded in April after 'Liberation Day' tariffs sent shockwaves through the market." - Lucinda Guthrie, Head of Mergermarket
"A key deal driver in 1H25 has been M&A to fuel the evolving AI landscape." - Lucinda Guthrie, Head of Mergermarket
Bottom Line:
The global M&A market in 1H25 showed a stark contrast between megadeals and mid-market activity. While large TMT transactions drove overall volume growth, economic uncertainties and geopolitical challenges significantly impacted smaller deals. The AI sector emerged as a key driver, with potential for increased activity in the second half of the year as dealmakers adapt to the new market conditions.
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