According to Bain & Company’s M&A Midyear Report, Mergers and acquisitions activity is holding firm in 2025 despite new uncertainties stemming from shifting tariff policies. After enduring earlier shocks from the pandemic and rising interest rates, companies are now responding more strategically to disruption, focusing on scale, capability expansion, and divestitures. The deal value initially declined in April 2025 but rebounded in May 2025, suggesting that tariffs may have had a more muted impact than previous shocks. Bain reports that strategic M&A activity has increased 11% year-over-year through May 2025. Suzanne Kumar, Executive Vice President of Bain & Company’s M&A and Divestitures Practice, stated, “In the present, challenging environment, it takes unique conviction and clarity to chart a multiyear strategy and proactively pursue M&A.” He added, “These executives are separating the signal from the noise and plowing ahead with transformations.”
The report outlines that the most effective companies are applying lessons from past crises to pursue M&A with confidence. High interest rates and regulatory scrutiny continue to pose challenges, particularly for sectors such as industrials, which experienced a 15% decline in deal value. In contrast, tech M&A remains active as firms acquire AI capabilities. Bain highlights four key strategies driving current M&A activity: leveraging existing strengths, building new capabilities, pursuing scale through consolidation, and aligning portfolios with shifting market dynamics, including the long-term impact of tariffs on supply chains and growth trends.
