UBS On-Air: Market Moves
Top of the Morning: CEO Macro Briefing Book - Insights for Dealmakers
Feb 20, 2025
Join Paul Hsiao, an expert in M&A and asset allocation at UBS, as he unpacks the exciting prospects for dealmakers in 2025. He discusses the positive outlook for mergers and acquisitions and how AI is reshaping capital expenditure. Paul highlights the surge in take-private deals and the potential revival of IPO activity, driven by favorable market conditions. He also emphasizes the importance of assessing risks while maintaining market optimism, particularly in the evolving AI landscape.
11:16
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Quick takeaways
- M&A activity is anticipated to increase in 2025 due to stable inflation and a pro-business regulatory landscape fostering deal enthusiasm.
- The significant rise in AI-related investments, constituting 44% of VC deals in 2024, reflects a growing strategic emphasis on technology among corporate leaders.
Deep dives
Dealmaking Expectations for 2025
M&A activity is expected to grow in 2025 due to several positive economic indicators. Stable inflation and recent growth trends have created a more favorable environment for deals, easing previous hesitations from buyers and sellers regarding valuations. A survey indicated that valuation discrepancies were a primary barrier to deal activity, but improved stability suggests a potential resurgence. Additionally, a pro-business regulatory landscape is encouraging increased deal-making enthusiasm among firms, while financial sponsors are under pressure to return capital to investors.
