The U.S. M&A market’s strength has historically been tied to the underlying economic conditions. This trend is reaffirmed in Dykema’s 20th Annual M&A Outlook Survey, where over 200 senior executives and dealmaking advisors expressed growing optimism for 2025. A significant 70% of respondents anticipate a stronger U.S. M&A landscape in the next 12 months, fueled by improved financial markets, capital availability, and a stabilizing economy. Quality targets and company valuations are increasingly seen as key drivers of current and future transactional activity.
Regulatory Concerns and Antitrust Risks
However, this optimism is somewhat tempered by persistent concerns about economic volatility and increased regulatory oversight. For instance, many respondents believe the FTC’s stricter merger reviews could dampen deal activity in 2025. In response, 75% of dealmakers plan to intensify their due diligence to assess potential antitrust risks in their target companies.
Sector-Specific Insights and the Role of Private Equity
Regulatory concerns are particularly heightened in the healthcare and energy sectors, which, along with financial services, are expected to see the most deal activity in 2025. Healthcare M&A is predicted to be driven by efficiency improvements and the need to adopt new technologies, while the energy sector’s focus will be on renewables and clean energy investments. Nearly seven in 10 dealmakers also believe private equity investors will drive M&A growth in 2025, as firms aim to deploy $2.5 trillion in available capital.
The Impact of AI on M&A
AI is rapidly transforming industries and becoming a key deal driver. Nearly three-quarters of respondents find that companies are seeking to integrate AI capabilities, acquire businesses leveraging the technology, and use it to streamline M&A processes.
