Unpacking International M&A: Strategic Global Plays

The world of mergers and acquisitions in 2025 has displayed remarkable resilience amid market uncertainties, offering both challenges and opportunities for global dealmakers. As volumes dipped, values soared, driven by transformative megadeals and strategic repositioning.

Global M&A Landscape in 2025

Mid-year reports reveal that deal volumes dropped by 9% in H1 2025 compared to the same period in 2024, falling to levels unseen in the past decade. Yet values rose by 15% to reach $1.5 trillion, indicating that companies prioritized scale and strategic consolidation over sheer deal count.

This trend toward larger deals has been punctuated by four US transactions exceeding $40 billion each, contrasted with none in 2024. Full-year projections from leading advisors suggest a total deal value of $4.8 trillion, up 36% year-over-year, the second-highest ever recorded. The US alone is on pace for $2.3 trillion, a 49% increase.

Valuation multiples declined to a median of 10.8x EBITDA, 14% below Q4 2024, reflecting caution amid high financing costs and geopolitical headwinds. Notably, US multiples rose modestly while Europe and Asia Pacific saw contractions.

Regional Trends Fueling Growth

Each region charted its own course through the M&A environment, influenced by domestic priorities, cross-border appetites, and sector strengths. In many cases, companies redirected focus to higher-growth markets or reinforced home-market positions.

• Americas: Led by the US, H1 value reached $908 billion (61% of global), up 26% in nine months. Domestic deals accounted for 91% of activity, with inbound from Asia Pacific doubling.
• Asia Pacific: Values rose 14% despite an 8% volume drop. India’s deal count climbed 18%, while Japan’s values surged 175% on two megadeals. Greater China maintained over 80% domestic focus.
• EMEA: Volume and value dipped by 6-7%, driven by fewer UK megadeals. However, EMEA acquirers increased spending in the Americas and Asia Pacific.

Cross-border transactions gained momentum in H1, especially as Asia and EMEA buyers sought scale in North America. This shift underscores a complex post-globalization realignment pressures dynamic shaping deal flows.

Sector Spotlight: Resilient and Emerging Areas

While activity was broad-based, certain sectors led the charge, buoyed by technological transformation or structural demand. Investors and strategic acquirers eyed industries where scale and capabilities could unlock new value.

• Aerospace and Defense: High-profile tie-ups like Airbus-Leonardo-Thales space joint ventures.
• Technology and AI: Accounting for roughly half of strategic deals above $500 million, with an emphasis on data, security, and talent acquisition.
• Energy and Utilities: Constellation Energy’s $26.6 billion acquisition of Calpine underscored the push for scale and decarbonization investment.
• Healthcare and Consumer: Steady growth in value, with major private equity buyouts in software-enabled services.

Despite this optimism, sectors such as retail, automotive, and traditional industrials saw contraction. Yet the overarching theme remained the pursuit of digital and operational transformation.

Key Drivers and Challenges

Dealmakers navigated a landscape defined by both opportunity and uncertainty. From fiscal policy shifts to accelerated technology adoption, the forces propelling and restraining M&A activity varied widely.

• Drivers: Strategic urgency around AI, portfolio rebooting, and capital allocation for transformation fueled bold moves. Anticipated interest rate cuts and tariff resolutions buoyed optimism.
• Challenges: Persistent high financing costs, regulatory scrutiny, and economic volatility tempered deal flow. Nearly 30% of US firms paused transactions over tariff concerns.

Private equity activity remained robust, with global PE deals approaching $2 trillion. Notable transactions included Thoma Bravo’s $12.3 billion Dayforce buyout and the $55 billion leveraged acquisition of Electronic Arts.

Strategies for Dealmakers in a New Era

In this evolved M&A environment, success hinges on agility, deep sector insight, and meticulous execution. Leading firms are adopting best practices to navigate complexity and capture value.

First, acquirers must integrate rigorous AI and technology diligence, ensuring that target capabilities align with long-term digital roadmaps. Second, scenario planning around tariff or policy changes can mitigate risks in cross-border plays. Finally, forging partnerships with local advisors and service firms enhances cultural alignment and regulatory navigation.

Emphasizing cash flow stability and operational synergies remains critical. As megadeals grow transformative in scale—over 40% now exceed 50% of acquirer market capitalization—acquirers must engineer seamless integration plans from day one.

Looking Ahead: H2 and Beyond

As the second half of 2025 unfolds, dealmakers anticipate continued momentum, driven by a multi-trillion dollar capex rush in infrastructure, renewable energy, and digital platforms. Predictions point to a resurgence in mid-market transactions as financing conditions ease.

Into 2026, the interplay between strategic M&A and organic innovation will define industry leadership. Companies that balance bold acquisition strategies with disciplined integration and technology deployment will emerge stronger in the next global cycle.

In an era marked by dynamic shifts, the story of international M&A is one of adaptation, strategic foresight, and the power of collaboration. By learning from 2025’s trends—capitalizing on technology, navigating regional nuances, and managing risk—dealmakers can chart a course toward sustained growth and value creation.