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Strategic Alternatives

2025 Global M&A Outlook: Confidence meets caution

Dec 6, 2024
Larry Grafstein, Deputy Chair of Global Investment Banking at RBC, joins Mark Rushton, European co-head of M&A at RBC Capital Markets, to explore the dynamic M&A landscape leading to 2025. They discuss how lighter regulation may facilitate dealmaking in the U.S. while analyzing the impact of political changes on market sentiments. The duo highlights the resurgence of private equity and emerging trends in corporate activism, particularly how these factors shape M&A strategies in North America and Europe.
32:56

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Quick takeaways

  • The anticipated regulatory changes under the new U.S. administration are expected to simplify M&A transactions and boost market confidence.
  • Rising private equity activity fueled by favorable financing and strategic acquisition interests highlights a robust outlook for key industries in 2025.

Deep dives

Current M&A Environment and Outlook

M&A volumes worldwide experienced a 15% increase through 2024, following a period of lower activity. Despite this uptick, average deal sizes have risen significantly, driven by a remarkable Q3 recovery after a slowdown in the first half of 2024. The impact of the recent U.S. elections has created a positive market sentiment, boosting expectations for a favorable deal-making environment moving into 2025. This renewed confidence is linked to the anticipation of lower corporate tax rates and a more business-friendly regulatory landscape.

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