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Global M&A Dealmakers Expect Active 2025: Sentiment Report

In a recent announcement, SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) published the 2025 Global M&A Dealmakers Sentiment Report, revealing a strong bullish sentiment among merger and acquisition (M&A) professionals. Conducted in collaboration with Reuters, this survey gathered insights from 419 global dealmakers, including professionals from private equity (PE) firms, corporate advisory roles, and investment banks. The results suggest a promising outlook for M&A activities in 2025, as these experts anticipate a significant increase in both deal volume and size.

Ken Bisconti, co-head of SS&C Intralinks, articulated the optimism by stating, "With Wall Street banks reporting stronger earnings and the U.S. Federal Reserve easing interest rates, our survey indicates a surge in activity and financing for the upcoming year." These findings capture the positive momentum expected in the M&A landscape, despite lingering concerns regarding inflation, regulatory challenges, and high business valuations.

Key Findings from the Report

The report provided critical insights into the state of the M&A market:
1. Growth Expectations: A significant 87% of respondents believe that M&A and financing activities will grow in 2025. Interestingly, private equity firms exhibited slightly more optimism on this front compared to corporate counterparts.
2. Larger Deals Ahead: Nearly half of the private equity participants indicated that they are likely to engage in transformative deals, valued at $10 billion or more, in the coming year.
3. Main Drivers of Activity: The primary forces propelling deal-making are projected to be geographical expansions and advancements in digital technologies. However, the report highlighted a potential reduction in opportunities surrounding distressed business restructurings.
4. Sector Interests: The financial services, technology, media, and telecom sectors are drawing considerable attention due to their robust performances in 2024 and promising long-term prospects.

Areas of Focus for Dealmakers

The report also shed light on the strategic priorities among M&A professionals, as they aim to navigate the complexities of the current environment:

• - AI Integration: Over half of the surveyed dealmakers expect a notable rise in the use of artificial intelligence tools in their processes, with generative AI anticipated to be a significant game changer in the M&A sector.
• - Data Privacy Concerns: Organizations engaged in AI applications are particularly concerned about data privacy and security issues, asserting these aspects as their top priorities.
• - Cybersecurity Threats: There remains an undercurrent of anxiety regarding cybersecurity, with more than 80% of respondents wary of evolving cyber-attack methods. Furthermore, nearly 75% foresee an increase in cybersecurity challenges. This scenario could reinforce the importance of safe environments like virtual data rooms (VDRs), integral to achieving deal success.
• - Digital Transformation: Many dealmakers (over a third) are making substantial investments toward digitalization to refine and modernize their operational processes.

Conclusion

The 2025 Global M&A Dealmakers Sentiment Report by SS&C Intralinks paints a vibrant picture for the future of M&A. With a clear roadmap detailing growth expectations and emerging challenges, it provides invaluable insights for stakeholders in navigating the impending market landscape efficiently. As professionals brace for an active 2025, the adoption of innovative technologies and robust cybersecurity measures will likely play a crucial role in driving successful outcomes. As the year unfolds, all eyes will be on how these predictions materialize, and who will lead the charge in this revitalized market landscape.