The global mergers and acquisitions (M&A) market is experiencing a significant resurgence in 2025, with a projected deal value of $4.8 trillion, marking the second-highest total on record. According to a report by Bain & Company, this represents a robust 36% increase from 2024. A surge in megadeals valued at over $5 billion has largely contributed to this rebound, as companies that typically engage in M&A infrequently have begun to take substantial risks.
Despite the overall increase in deal value, the number of M&A transactions is expected to rise by only 5% this year. Megadeals of over $5 billion accounted for a remarkable 75% of the growth in strategic deal value, with approximately 60% of these transactions initiated by infrequent acquirers. Notably, around two-fifths of these deals are transformative, exceeding 50% of the acquirer’s market capitalization, underscoring the high stakes involved.
Technology Sector Leads M&A Surge
The technology sector is at the forefront of this year’s M&A activity, particularly driven by deals related to artificial intelligence (AI). M&A in the tech sector has seen a staggering 76% increase, reaching $478 billion year-to-date. Notably, nearly half of the strategic technology deal value, specifically those exceeding $500 million, has involved AI-native companies or highlighted AI-related benefits.
The resurgence is not limited to technology; it spans across various industries and regions. The United States has emerged as a leader in M&A activity, accounting for nearly 50% of the total strategic deal value in 2025. Following the U.S., Greater China has the highest deal count, driven primarily by its domestic market, which constitutes more than 80% of the region’s deal value. Japan’s M&A market has also shown remarkable growth, doubling in value to become the third-largest globally this year.
Market Dynamics and Future Outlook
Several factors are propelling this M&A revival. Bain’s analysis identifies easing regulations, reduced capital costs, and a narrowing buyer-seller valuation gap as critical drivers. The average valuation has increased to 11.6x EV/EBITDA, although it remains below peak levels observed in 2021. Additionally, a growing number of executives recognize the urgency to adapt strategies in response to rapid changes in market dynamics, particularly influenced by AI.
Despite uncertainties related to tariffs and trade, their impact on M&A activity has been minimal. A survey of M&A executives indicates that fewer than half foresee trade restrictions affecting their overall plans, while 70% believe trade policy will not influence divestiture strategies. As global trade patterns evolve, M&A is viewed as a means to maintain market access and flexibility.
Looking ahead, Bain & Company is set to release its comprehensive 2026 Global M&A Report in January, offering insights into expected trends and industry analyses. This report will include perspectives from over 300 M&A practitioners across multiple countries, including the United States, Australia, Canada, and several European and Asian nations, providing a global snapshot of the evolving M&A landscape.
In summary, 2025 is shaping up to be a landmark year for M&A, driven by substantial megadeals and a strategic focus on growth. The insights from Bain’s report suggest that as companies navigate this resurgence, the emphasis on strategic alignment and integration will be critical for realizing value in their acquisitions.
