Global M&A staged a strong rebound in 2025, with total deal value reaching about $4.8 trillion, marking the second-highest level on record. This represents a 36% rise from 2024, even though the number of deals grew by only 5%, showing that growth came mainly from larger transactions. Megadeals valued at more than $5 billion accounted for most of the increase in strategic deal value, with many led by companies that had not been frequent acquirers in the past.
Technology and advanced manufacturing led the recovery, supported by strong activity in AI-linked assets and industrial upgrades. The U.S. generated nearly half of the total strategic deal value, while China and Japan also posted strong results, and Europe, the Middle East, and Africa saw growth driven by large transactions.
Improving market conditions, lower capital costs, and a narrower gap between buyer and seller valuations encouraged firms to return to M&A as a core growth tool. At the same time, AI influenced how buyers assessed targets, with many walking away after reviewing AI-related risks or benefits. Firms also favored scope deals that add new markets and capabilities rather than simple scale. Even with higher deal activity, capital spent on M&A remained a small share of total cash outlays as companies also invested in technology, automation, and supply chains.
