The U.S. M&A landscape in 2025 remains uncertain as dealmakers face volatility from aggressive trade policies and shifting regulatory signals under the new administration. PwC’s May 2025 Pulse Survey revealed that 30% of respondents paused or revisited deals due to tariff concerns. So far, deal value has reached $567 billion across 4,535 deals, mirroring last year’s pace. However, 51% of executives reported being in the early or advanced stages of new deal pursuits. While policy changes have created temporary hurdles, many companies are using this period to reassess M&A strategies. The report stated that the ongoing volatility could present opportunities for strategic and financial buyers who are able to act swiftly and with confidence. Activist investor activity, especially in uncertain markets, has also contributed to a rise in potential divestitures, offering possible opportunities for well-prepared firms.
Despite a cautious approach, companies recognize M&A as a strategic tool for adapting to technological shifts, AI acceleration, and industry convergence. The survey found energy sector deals were most impacted by tariffs, while consumer markets saw fewer delays. Private equity remains watchful, with dry powder available for attractive acquisitions, particularly take-privates. PwC emphasized that relying on the broader market's performance is no longer viable, urging CFOs to preserve liquidity, evaluate their debt capacity, and be ready to act swiftly when market conditions improve.
