Mergers & Acquisitions Timeline: Robust Market Poised to Persist in 2025

M&A Markets, Thy Name Is Resiliency

It’s been a remarkable run for the mergers and acquisitions market—and 2025 is shaping up to continue that trend. Despite persistent inflation, higher interest rates, geopolitical tensions, and ongoing global uncertainty, the M&A market has remained impressively resilient.

In the U.S., the pandemic-fueled market shock of early 2020 initially sent deal activity plummeting. According to U.K.-based analytics firm GlobalData, global M&A deals dropped from 2,349 in February 2020 to 1,984 in March 2020, with deal value falling from $151.2 billion to $129.9 billion.

But the bounce-back was swift. By 2021, global deal value soared to $5.9 trillion, driven by pent-up demand, abundant capital, and economic reopening, per Bain & Company.

While M&A activity cooled somewhat in 2022, dipping around 20%, the fundamentals that support robust deal-making never fully disappeared. Even in 2023 and 2024, activity remained healthy—if more measured—despite macroeconomic headwinds. Now, in 2025, market sentiment remains cautiously optimistic.

Key Drivers in 2025

Capital remains accessible, if costlier. Corporate balance sheets are still solid, and private equity firms continue to hold record amounts of dry powder. Despite higher borrowing costs, strategic and financial buyers alike remain eager to deploy capital, especially in sectors where long-term fundamentals remain strong.

According to Bain & Company, 2024 and early 2025 have seen continued emphasis on strategic deals, especially in sectors such as technology, industrials, and business services. Many executives are making acquisitions to reshape their businesses for a digital-first and post-carbon economy.

Market Trends: Scope, Strategy, and Selectivity

Bain highlights the rising popularity of "scope and capability" deals—where companies pursue targets to enter new markets, acquire digital capabilities, or expand offerings. With the digital transformation accelerating and climate-focused strategies gaining traction, many buyers are thinking beyond scale and cost synergies.

Meanwhile, inter-regional M&A remains subdued. Heightened geopolitical uncertainty, stricter national security reviews, and economic protectionism have slowed cross-border deals in some regions. However, where regulatory paths are clear, cross-border interest persists.

Sector Spotlights

Transportation, Distribution, and Staffing:
David Clark, vice president of Ohio-based M&A advisory firm ArkMalibu, continues to see robust consolidation opportunities in these industries.

“We believe 2025 will be another strong year,” Clark told Advisors Magazine. “Buyers still have capital to put to work, and sellers are motivated by rising earnings—even if multiples have compressed slightly. The fundamentals remain sound.”

Clark points to three key performance indicators: earnings growth, buyer capital availability, and access to acquisition financing. Despite increased borrowing costs, these indicators remain favorable.

“Even with some multiple compression, earnings growth is outpacing it. So it’s still a good time to sell,” he added.

Facility Services and Building Systems:
Robert Kirkpatrick, managing partner of D.C.-based Broadside Advisors LLC, said the facility services market has continued to thrive into 2025.

“These are steady, essential businesses. Whether buildings are occupied or not, they need maintenance,” he noted. “That consistency is attractive to investors.”

Valuations in the sector have climbed, supported by stable EBITDA and limited downside risk. “The multiples have grown significantly, and investors are eager to invest in reliable cash-flow businesses,” Kirkpatrick said.

Real Estate and Capital Markets:
Deborah Smith, CEO of The CenterCap Group LLC, said uncertainty still looms over the real estate sector—but M&A activity has remained strong.

“The longer this period of inflation and interest rate volatility lasts, the more pressure real estate M&A will face,” she explained. “But we’re still seeing strong activity, especially in strategic and growth-driven deals.”

Smith notes that the biggest hurdle right now is not capital availability—but the pricing gap between buyers and sellers. “As interest rates shifted, valuations had to recalibrate. That’s causing some pause, but not a pullback,” she said.

Even with a more selective market, Smith expects 2025 to be another high-performing year for her firm. “Whether it’s domestic or international capital, we’re seeing activity across the board,” she said.

M&A Resilience in 2025 and Beyond

The experts Advisors Magazine spoke with expect M&A momentum to continue through the rest of 2025 and into 2026. While global uncertainty remains, and the risk of a mild recession lingers, the fundamentals—cash reserves, deal demand, and sector-specific tailwinds—remain strong.

“There’s still a ton of capital out there,” Clark said. “And if buyers have money to put to work, deals will get done.”

While lending may become more selective, dealmaking isn't slowing down dramatically. Kirkpatrick anticipates continued activity, with only moderate rationalization of valuations.

“The market may cool slightly if a recession takes hold,” he said. “But the sectors we focus on—steady, service-driven industries—have proven resilient through multiple cycles.”

In short: even in a choppier macroeconomic environment, M&A markets are holding firm. And if 2025 is any indication, dealmakers aren’t done yet.