The new year will be a banner year for mergers and acquisitions (M&A) activity across sectors and national borders, driven by lower interest rates, deregulation, macroeconomic stability, liquidity, lower valuations, strategic initiatives, and private equity financing, according to analysts.
“M&A will buzz in 2025,” Maggie Lord, business advisor and founder of Maggie Lord and Company, told The Epoch Times via email. “With companies looking for solutions for fast growth, strategic acquisitions, and the need to fold in AI solutions, we will see heavy M+A activity.”
Lord sees technology at the forefront of the trend, as tech and non-tech companies will reach out to acquire capabilities and talents to stay competitive. “Tech deals will lead the way in M&A, focusing on areas like AI, machine learning, and blockchain,” she said.
“Even non-tech companies will buy tech startups to stay competitive and prepare for the future. Companies will focus more on acquiring capabilities, technologies, and talent rather than just revenue. This trend is driven by the need to stay competitive in industries disrupted by innovation and digital transformation.”
Sidharth Ramsinghaney, director of strategy and operations with Twilio, provides further insight into the narrative for a banner year for M&A in 2025.
“These projections reflect a broader shift as macro conditions stabilize and valuation expectations between buyers and sellers converge,” he told The Epoch Times via email.
Ramsinghaney, too, believes the technology sector is leading the way, with deals extending beyond the “Magnificent 7 tech companies,” as AI capabilities are becoming central to competitive advantage across industries, lower valuations are making growth-stage tech companies more attractive targets, and traditional industries are accelerating digital transformation through acquisitions.
J. Patrick Galleher, CEO and managing partner of investment bank Boxwood Partners, sees another sector ripe for M&A deals 2025: franchising.
“Quick-service restaurants (QSRs) are poised to witness increased activity in the M&A space, thanks to their proven adaptability and resilience,” he told The Epoch Times via email.
“Beyond QSRs, the health and wellness sector is emerging as a standout in the M&A space. Franchises in fitness, health, beauty, and clean eating thrive as consumers prioritize well-being and self-care. Home services, childcare, and senior care are also positioned for significant growth.”
Alex Lubyansky, managing partner at Acquisitions Stars, sees several factors driving M&A deal activity and shaping the landscape for the rest of the year, like lower interest rates, stable markets, and more companies willing to make moves.
“With all the recent talk about inflation and central bank policies, these factors are especially worth watching,” he told The Epoch Times via email.
In addition, he sees private equity as playing a huge role in the market.
“These firms are sitting on substantial amounts of capital (what we call ”dry powder“ in the industry), and they’re particularly active in mid-sized deals,” he wrote.
Andrew Schupak of SGI Merchant Banking said that the interplay between private equity’s $4 trillion war chest and the constraints in the Initial Public Offering (IPO) market will reshape M&A in unexpected ways in 2025.
“Sponsors navigating liquidity pressures, expiring funds, and a limited exit horizon will create ripple effects—some predictable, others less so,” he told The Epoch Times via email. “The role of PE-to-PE trades and public buyers in this environment is a story still unfolding.” PE-to-PE trade refers to a private equity-to-private equity transaction. This occurs when one private equity firm sells its stake in a company to another private equity firm.
Adding to the favorable factors for M&A in 2025 is the incoming Trump administration, which will bring new leadership to government agencies, including the Department of Justice (DOJ) and the Federal Trade Commission (FTC), overseeing M&A activity.
“M&A looks to accelerate in 2025 as the Trump administration takes over and brings changes in leadership,” Joseph J. Raetzer, founding lawyer at Raetzer, told The Epoch Times via email.
“The DOJ’s and FTC’s current leadership has been pro-consumer and seen as a stalwart against corporate consolidation. The result has been that M&A substantially slowed in recent years as the FTC and DOJ have challenged a record number of acquisitions across different sectors.”
Ramsinghaney said market indicators suggest a return to more robust M&A activity, and doesn’t expect overall volumes in 2025 to reach 2021’s peak levels.
“The convergence of stabilizing macro conditions, technology-driven transformation needs, and accumulated dry powder points to increased dealmaking across sectors,” he said.
“With reduced election uncertainty, robust economic activity, and lower interest rates on the horizon, 2025 presents a window of opportunity for strategic transactions.”
