Seasoned Dealmakers Fuel M&A Recovery Amid Market Volatility

• BCG's Annual M&A Report Finds Global Deal Value Rose 10% to $1.9 Trillion Through Q3 2025; Signs of Renewed Optimism Emerge
• North America Remains a Hub of M&A Activity; Europe Delivers Mixed Results; Asia-Pacific Hits a Ten-Year Low
• Dealmaking Confidence Highest in Technology and Energy Sectors
• Cross-Border Deals Now Just 30% of Global Value, Down from 50% in 2007

BOSTON, Oct. 28, 2025 /PRNewswire/ -- After a rocky start to the year, the global M&A market is regaining momentum. In the first nine months of 2025, global deal value rose 10% to $1.9 trillion compared with the same period last year.

This recovery is not yet being driven by broad global optimism, but predominantly by a select group of experienced dealmakers making disciplined, strategic bets amid continued market volatility. This is according to the 22nd annual Global M&A Report from Boston Consulting Group (BCG), released today.

BCG's M&A Sentiment Index—a forward-looking indicator of deal activity—has been increasingly positive across all sectors recently, with confidence highest in technology and energy.

"The global M&A recovery is real but uneven, with markedly different trajectories across regions and sectors," said Jens Kengelbach, BCG's global head of M&A and a coauthor of the report. "We're seeing an increase in deal preparation in the second half of 2025, and early signs that IPO pipelines are starting to move. Momentum is building."

Geographic and Sector Disparities Widen

• North America led all regions, accounting for 62% of global M&A activity. Deals involving targets in the Americas had a total value of $1.3 trillion, an increase of 26% versus the first nine months of 2024.
• Europe saw mixed results. The value of European M&A totaled $375 billion—a 5% decline compared with last year. Deal value in Spain (-58%), the UK (-35%) and France (-29%) declined, while the Netherlands (+263%) and Switzerland (+109%) experienced robust gains.
• Asia-Pacific fell 19% to a ten-year low of $284 billion. Bright spots in Singapore (+38%) and mainland China (+11%) could not counter downward trends in South Korea (-13%), India (-20%), and Hong Kong (-73%).
• Africa, the Middle East, and Central Asia recorded a 6% increase in aggregate deal value, though activity remains below the 10-year average.

Across sectors, industrials rose 77% versus last year, led by transportation and infrastructure transactions. Technology, media, and telecommunications (10%), energy (20%), and health care (20%) also posted gains. Conversely, the materials (-16%) and consumer (-17%) sectors saw substantial declines in deal value.

Large-scale transactions are returning, with 27 megadeals (valued over $10 billion) announced so far in 2025—up from 21 last year.

Embedding AI and Analytics Gives Dealmakers a Critical Edge

AI is already proving to be an essential tool for dealmakers—reshaping processes, streamlining due diligence, and enhancing transaction efficiency. Competitive advantage will, in part, hinge on how effectively and quickly dealmakers integrate AI into daily workflows.

Cross-Border Activity Slows

Once a hallmark of globalization, cross-border M&A activity has shrunk to just 30% of global deal value, down from approximately 50% in 2007.

BCG's analysis finds intra-regional deals are outperforming domestic ones, delivering a two-year relative total shareholder return (rTSR) of +1.2%, compared to -0.9% for domestic deals. Still, the picture varies across regions and sectors.

Experienced Acquirers Outperform—As Always

Across deal sizes, sectors, and regions, two-year rTSRs of M&A transactions drop during periods of uncertainty (median of -0.4%). Within this ambiguity, a pattern emerges: companies with deep, institutionalized M&A experience outperform.

In deals valued at more than $100 million, two-year rTSR is approximately 1.0% for experienced acquirers versus -7.5% for inexperienced acquirers.

In turbulent periods, simple strategies prove effective, including roll-ups, same-industry targets, and cross-border deals close to home.

"Uncertainty is often seen as the enemy of dealmaking, but it doesn't have to be," said Daniel Friedman, BCG's global leader of transactions and integrations, and a coauthor of the report. "Savvy dealmakers stay focused on the long game, making bold, measured and disciplined bets that can unlock value even when markets are at their most volatile."

Download the articles that make up the report here: Article 1, Article 2, Article 3, and Regional Perspectives.

For monthly updates on dealmakers' willingness to engage in transactions, see BCG's M&A Sentiment Index.

Media Contact:
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SOURCE Boston Consulting Group (BCG)