Global merger and acquisition (M&A) activity is showing signs of recovery, with deal value rising 10 per cent to $1.9 trillion in the first nine months of 2025.
According to Boston Consulting Group’s (BCG) 22nd annual Global M&A Report, the rebound is being driven largely by experienced dealmakers making strategic moves amid ongoing market volatility.
“The global M&A recovery is real but uneven, with markedly different trajectories across regions and sectors. We’re seeing an increase in deal preparation in the second half of 2025, and early signs that IPO pipelines are starting to move. Momentum is building,” said Jens Kengelbach, BCG’s global head of M&A and coauthor of the report.
BCG’s M&A Sentiment Index showed rising confidence across all sectors, with optimism highest in technology and energy.
North America led all regions, accounting for 62 per cent of global M&A activity. Deals involving targets in the Americas reached a total value of $1.3 trillion, a 26 per cent increase compared to the first nine months of 2024.
Europe recorded mixed results, with total deal value of $375 billion, a five per cent decline compared with last year. Activity in Spain fell 58 per cent, the UK 35 per cent, and France 29 per cent, while the Netherlands rose 263 per cent and Switzerland 109 per cent.
Asia-Pacific posted a 19 per cent decline to a ten-year low of $284 billion. Gains in Singapore, up 38 per cent, and mainland China, up 11 per cent, were not enough to offset declines in South Korea, India, and Hong Kong, which dropped 13 per cent, 20 per cent and 73 per cent, respectively.
Africa, the Middle East, and Central Asia registered a six per cent increase in aggregate deal value though activity remained below the 10-year average.
Across sectors, industrials led growth with a 77 per cent increase driven by transportation and infrastructure transactions. Technology, media, and telecommunications rose 10 per cent, while energy and healthcare each climbed 20 per cent. The materials and consumer sectors fell 16 per cent and 17 per cent, respectively.
Large-scale transactions are also making a comeback, with 27 megadeals valued above $10 billion announced so far in 2025, up from 21 last year.
The report highlighted that artificial intelligence is becoming an essential tool for dealmakers reshaping due diligence, streamlining processes and improving transaction efficiency. BCG said competitive advantage will increasingly depend on how effectively dealmakers integrate AI into daily workflows.
Cross-border M&A activity has slowed, now representing just 30 per cent of global deal value compared to around 50 per cent in 2007. The report found that intra-regional deals are outperforming domestic ones, delivering a two-year relative total shareholder return (rTSR) of 1.2 per cent compared to -0.9 per cent for domestic transactions.
Across all deal sizes and sectors, two-year rTSRs of M&A transactions tend to fall during periods of uncertainty with a median of -0.4 per cent. BCG’s findings show that experienced acquirers continue to outperform less seasoned players. For deals valued at over $100 million, experienced acquirers achieved an average rTSR of 1.0 per cent versus -7.5 per cent for inexperienced ones.
“Uncertainty is often seen as the enemy of dealmaking, but it doesn’t have to be. Savvy dealmakers stay focused on the long game, making bold, measured and disciplined bets that can unlock value even when markets are at their most volatile,” said Daniel Friedman, BCG’s global leader of transactions and integrations, and a coauthor of the report.
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