Amid geopolitical shifts, economic uncertainty, and rising capital costs, M&A leaders are reshaping their strategies to stay competitive. Deloitte’s 2025 M&A Trends survey of 1,500 U.S.-based corporate and private equity professionals reveals a strong move toward flexible deal structures and alternative funding options. Traditional M&A activity is now nearly matched by joint ventures, alliances, and divestitures, a 42% rise in such deals between 2022 and 2024. As commercial bank lending tightens, dealmakers are increasingly tapping into private credit and equity for more adaptable financing. CFOs are playing a central role in this shift, pioneering innovative funding models that align with long-term value creation while navigating turbulent capital markets. With private equity assets under management projected to hit $2.8 trillion by 2028, the use of nontraditional financing is poised to grow.
In response to shifting market dynamics, 88% of corporate and 81% of private equity respondents have revised their deal-targeting strategies, narrowing sector focus to better manage tariff-related risks. Cross-border M&A remains a key priority, with 85% of respondents eyeing opportunities in Canada, Mexico, and Europe to access technology and mitigate supply chain vulnerabilities. However, ongoing geopolitical tensions continue to temper optimism. CFOs are increasingly involved in evaluating cross-border risk and aligning transaction strategies with broader organizational goals. As economic and regulatory conditions evolve, the survey highlights the need for adaptability and speed, with C-suite leaders recognizing the importance of agile decision-making in the dealmaking environment.
