Global mergers and acquisitions activity is showing signs of recovery after a slow start to the year, with deal value rising 10% to $1.9 trillion through the first nine months of 2025, according to the 22nd Annual Global M&A Report released by the Boston Consulting Group (BCG). The rebound is led by experienced dealmakers making selective, strategic moves rather than a broad wave of optimism.
The report notes that the rebound is being led by a small group of experienced dealmakers making selective and strategic moves, rather than a broad wave of optimism. Despite ongoing market uncertainty, BCG says these investors are navigating volatility with discipline and long-term planning.
“The global M&A recovery is real but uneven, with markedly different trajectories across regions and sectors. We are seeing an increase in deal preparation in the second half of 2025, and early signs that IPO pipelines are starting to move. Momentum is building.” — Jens Kengelbach, BCG’s global head of M&A
Regional breakdown
North America led all regions, accounting for 62 per cent of global M&A activity, with deal value in the Americas rising 26 per cent to USD 1.3 trillion. Europe recorded a mixed performance, down 5 per cent overall, while Asia-Pacific fell 19 per cent to a ten-year low of USD 284 billion. Within Asia, Singapore and mainland China showed growth, but India’s deal value slipped 20 per cent, reflecting broader regional slowdowns.
Sector performance
Industrials: Rose 77 per cent vs 2024, led by transportation and infrastructure transactions.
Technology, media and telecommunications: Up 10 per cent.
Energy: Up 20 per cent.
Health care: Up 20 per cent.
Materials: Down 16 per cent.
Consumer: Down 17 per cent.
Large-scale transactions are returning, with 27 megadeals (valued over USD 10 billion) announced so far in 2025, up from 21 last year.
AI in dealmaking and the cross-border shift
The report further notes that artificial intelligence (AI) is becoming a key tool for dealmakers, improving due diligence and execution speed. Meanwhile, cross-border M&A has dropped to just 30 per cent of total deal value, down from about 50 per cent in 2007 — reflecting both regulatory friction and strategic preference for domestic consolidation.
The discipline gap
Despite challenges, BCG finds that companies with more experience in dealmaking consistently outperform others. In Daniel Friedman’s framing — BCG’s global leader of transactions and integrations — “Uncertainty is often seen as the enemy of dealmaking, but it does not have to be. Savvy dealmakers stay focused on the long game, making bold, measured, and disciplined bets that can unlock value even when markets are at their most volatile.”
What this means for middle-market executives
For middle-market operating companies and private equity portfolios, the headline recovery masks uneven conditions. Deal volume is rising but concentrated. Experienced dealmakers are capturing disproportionate share. Industrial, energy, and healthcare transactions are outperforming. The implication for sell-side preparation, buy-side diligence readiness, and capital markets strategy is that the bar has risen — valuations are supported but only for well-prepared processes run by disciplined teams.
About the author
Goran Gmitrovic
Founder & Principal Consultant
Goran Gmitrovic is a strategic finance leader who works with middle-market operating companies to bring clarity, discipline, and confidence to financial decision-making. He partners with CFOs, CEOs, controllers, and operating leaders across manufacturing, distribution and warehousing, technology, medical device and healthcare services, and family-office-backed organizations.
His work focuses on translating financial data into planning models leadership teams can rely on — across forecasting, pricing and margin analysis, capacity planning, cash flow management, and growth and downside scenarios. Two-time nationally recognized 40 Under 40 honoree.
Global M&A Rise 10% to $1.9 Trillion in 2025: BCG Report
The report notes that the rebound is being led by a small group of experienced dealmakers making selective and strategic moves, rather than a broad wave of optimism. Despite ongoing market uncertainty, BCG says these investors are navigating volatility with discipline and long-term planning.
“The global M&A recovery is real but uneven, with markedly different trajectories across regions and sectors. We are seeing an increase in deal preparation in the second half of 2025, and early signs that IPO pipelines are starting to move. Momentum is building.” — Jens Kengelbach, BCG’s global head of M&A
Regional breakdown
North America led all regions, accounting for 62 per cent of global M&A activity, with deal value in the Americas rising 26 per cent to USD 1.3 trillion. Europe recorded a mixed performance, down 5 per cent overall, while Asia-Pacific fell 19 per cent to a ten-year low of USD 284 billion. Within Asia, Singapore and mainland China showed growth, but India’s deal value slipped 20 per cent, reflecting broader regional slowdowns.
Sector performance
Large-scale transactions are returning, with 27 megadeals (valued over USD 10 billion) announced so far in 2025, up from 21 last year.
AI in dealmaking and the cross-border shift
The report further notes that artificial intelligence (AI) is becoming a key tool for dealmakers, improving due diligence and execution speed. Meanwhile, cross-border M&A has dropped to just 30 per cent of total deal value, down from about 50 per cent in 2007 — reflecting both regulatory friction and strategic preference for domestic consolidation.
The discipline gap
Despite challenges, BCG finds that companies with more experience in dealmaking consistently outperform others. In Daniel Friedman’s framing — BCG’s global leader of transactions and integrations — “Uncertainty is often seen as the enemy of dealmaking, but it does not have to be. Savvy dealmakers stay focused on the long game, making bold, measured, and disciplined bets that can unlock value even when markets are at their most volatile.”
What this means for middle-market executives
For middle-market operating companies and private equity portfolios, the headline recovery masks uneven conditions. Deal volume is rising but concentrated. Experienced dealmakers are capturing disproportionate share. Industrial, energy, and healthcare transactions are outperforming. The implication for sell-side preparation, buy-side diligence readiness, and capital markets strategy is that the bar has risen — valuations are supported but only for well-prepared processes run by disciplined teams.
Founder & Principal Consultant
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