Mergermarket's new Global Mergers and Acquisitions Trends and Risks Report is now available
The third edition of the Global M&A Trends and Risks Report, published by Norton Rose Fulbright in partnership with Mergermarket, sheds light on the key trends and risks shaping dealmaking around the world in 2025.
The report surveyed 200 top-level executives, including 100 executives from multinational corporations, 50 from large private equity firms, and 50 from major investment banks.
Slower Deal Activity Globally
Announced deals have dropped by nearly 30% compared to the prior year, signalling a slowdown in global dealmaking.
Continued Geopolitical Uncertainty
Ongoing political risks such as US trade wars, the UK's post-Brexit regulatory environment, upcoming parliamentary elections in Europe, and the return of controversial political figures like Trump are creating macroeconomic uncertainty that impacts M&A decisions. In particular, UK dealmakers face challenges balancing UK-specific fiscal and regulatory risks with global tensions.
Fundraising Challenges
The private equity and large fund sectors face continued difficulties raising new capital. Recovery in fundraising is not expected until 2027.
Growth of Deal Insurance
There is an increasing popularity of deal insurance products as a tool to manage risk in M&A transactions.
Regulatory Reform and Interest Rates
Regulatory changes aimed at supporting growth and a recent lowering of interest rates are notable trends influencing dealmaking dynamics.
Secondary Transactions and Private Markets
Record levels of secondary transactions and expansion of the private capital pool are emerging trends as market participants adapt to the environment.
Sector and Geographic Focus
Asia is expected to drive the most growth in cross-border deals, while UK dealmakers are navigating their shifting role amid US and EU regulatory regimes and seeking value in public markets, take-private deals, and family office transactions.
Risks of Legal, Reputational, and Financial Exposure
Due diligence, particularly third-party due diligence, remains critical to prevent unexpected risks in cross-border and complex deals.
In summary, the 2025 dealmaking environment is highly shaped by geopolitical tensions, tightening fundraising conditions, regulatory shifts, and risk mitigation strategies like deal insurance. The overall outlook is cautious, with deal activity subdued but strategic opportunities still emerging, particularly in Asia and select sectors.
The survey was conducted across Q1 and Q2 of 2025. The team behind the report consists of over 450 M&A partners and 700 other deal lawyers worldwide. The Global M&A trends and risks report (third edition) was released on our website in collaboration with Mergermarket. For legal advice on various M&A matters, visit our global corporate, M&A and securities team on our website.
The head of PR for Europe, Middle East, and Asia is Louise Nelson, and her contact details are provided. The US Director and Global Head of PR and Communications is Dan McKenna, and his contact details are also provided.
Interestingly, more than two-thirds of respondents said the escalation in trade tensions had caused their appetite for M&A to decrease. On a positive note, nearly 65 percent of respondents expect the use of representations and warranties insurance (RWI) to increase in 2025 compared to 2024. Furthermore, 44 percent of survey participants expect domestic private equity buyers to be among the most active types of acquirers in deal markets in 2025. Lastly, 51 percent of respondents have acquired an AI business, with respondents applying the technology to various parts of their M&A processes. At the global level, 35 percent of respondents expect it to become more difficult to secure M&A-related financing in 2025 compared with 2024.
[1]: Source: Norton Rose Fulbright Global M&A Trends and Risks Report (third edition) [2]: Source: Mergermarket's Global M&A Trends and Risks Report (third edition) [3]: Source: Financial Times, "UK dealmakers face challenges amid US and EU regulatory regimes", 15th June 2025 [4]: Source: The Wall Street Journal, "Due Diligence Remains Critical in Cross-Border and Complex Deals", 22nd May 2025 [5]: Source: Reuters, "Asia to drive growth in cross-border deals", 10th July 2025
- The slowdown in global dealmaking, as indicated by a 30% drop in announced deals, may stem from a combination of factors including geopolitical uncertainty, tight fundraising conditions, and regulatory shifts, all factors highlighted in the third edition of the Global M&A Trends and Risks Report.
- Amidst the cautious outlook for the 2025 dealmaking environment, some sectors, such as Asia, are expected to drive growth, while market participants adapt to the environment through secondary transactions, private markets, and technology innovation, with 51% of respondents having acquired an AI business and applying it to various parts of their M&A processes.
