Global Dealmakers Anticipate Increase in M&A Disputes Amid Market Recovery in 2025

The landscape of mergers and acquisitions (M&A) is shifting once again as various forces reshape deal activity around the globe. According to the latest findings from BRG's M&A Disputes Report 2025, dealmakers are bracing for a rise in M&A disputes despite a return of confidence in the market.

Shifting Economic Landscape

The economic conditions impacting M&A transactions are becoming increasingly complex. As reported, various factors, including geopolitical tensions, consistent scrutiny from antitrust authorities, and economic fluctuations primarily fuelled by tariffs, are contributing to an environment where disputes could spike. This is a stark contrast to the preceding year, as industry stakeholders are compelled to reassess risks and engagement strategies.

Amid encouraging signs of market recovery, many dealmakers are adopting a cautious stance regarding performance metrics and financial contingencies. Observations from 2024 indicate a notable uptick in negotiation-related disputes, particularly those surrounding purchase price agreements and indemnity clauses. Going forward, about one-third of industry professionals interviewed predict that earnout provisions, designed to mitigate certain performance risks, will be a primary source of disputes this year.

Report Methodology and Insights

The M&A Disputes Report draws on insights from a combination of qualitative interviews with top-tier dispute and corporate lawyers and a survey that encompassed over 200 legal professionals, private equity executives, and corporate finance advisors from regions including Asia-Pacific, EMEA, North America, and Latin America. As this report enters its sixth year, it continues to highlight how macroeconomic trends and geopolitical conditions will shape the M&A landscape in the years to come.

As a significant number of dealmakers reported increased activity in the financial services sector—43% noted disputes here, marking a 10-point leap from the prior year—the ripple effects of the 2023 banking crisis ensure that M&A disputes remain at the forefront of industry concerns.

There is also a prevailing sentiment among almost half of surveyed professionals that further disputes in financial services will persist throughout 2025. This anticipatory outlook comes as regulatory environments are projected to relax coinciding with a resurgence in M&A undertakings.

Geographical Variances

Notably, the EMEA region is predicted to experience the highest volume of disputes, driven largely by ongoing regulatory challenges. Even as private equity firms maintain rigorous due diligence practices, the report indicates that their growing familiarity with litigation in enforcing contract provisions could signal a rising trend of disputes across the board.

Conclusion

As professionals delve into a maturing M&A environment characterized by volatility and uncertainty, the need for a comprehensive dispute mitigation strategy is paramount. The insights shared in BRG's M&A Disputes Report 2025 offer invaluable guidance for navigating the intricacies of the current transaction landscape, highlighting the potential pitfalls that could lead to protracted and costly disputes. Moving forward, dealmakers must tap into these insights to harness growth opportunities while effectively shielding their interests against evolving risks.

For more details on the research findings, download a copy of BRG's M&A Disputes Report 2025 and equip your organization with critical insights to manage the complexities of the M&A environment effectively.