According to the latest EY‑Parthenon CEO Outlook Survey, 56% of chief executives worldwide plan to pursue mergers or acquisitions in 2025—up significantly from 37% in September 2024. This sharp increase—described as the “largest in nearly two years”—signals a renewed willingness among global executives to embrace strategic M&A as a catalyst for transformation.
The recovery stems from multiple converging factors. Chief among them are declining U.S. borrowing costs and clearer post-election policies, which executives say are reducing transaction risks and increasing deal attractiveness. The survey highlights that 60% of global CEOs expect an increase in transactions exceeding $10 billion in 2025, indicating not only greater deal volume but also more megadeals.
Confidence among executives has surged alongside this uptick. The Global CEO Confidence Index climbed to 73.5% post-U.S. election, compared to 70.5% in September, reflecting a renewed optimism about overarching business conditions. Jad Shimaly, EY’s global managing partner for client service, noted at the January meeting in Davos that “Many of our clients are very upbeat and they see bright spots into the future…drives a lot of momentum in the global economy”.
Real estate, technology, and consumer products sectors are expected to lead this resurgence in M&A activity. The survey reports that nearly half of CEOs—48%—also plan divestments or carve-outs, while an overwhelming 96% anticipate engaging in some form of transaction, whether through mergers, IPOs, joint ventures, or alliances.
Geographically, North America and Europe are projected to be hotspots for dealmaking. Beyond the U.S., Canada, Mexico, the U.K., and Germany are cited as prime investment destinations in 2025. As bankers forecast global deal volumes surpassing $4 trillion this year, momentum is building toward a historic rebound.
EY’s survey also sheds light on the strategic drivers behind this trend. The most confident CEOs are not only pursuing scale but using M&A to secure strategic capabilities, bolster innovation, and enhance resilience across their organizations. This shift marks retreat from reactive deal behavior to systematic, transformation‑oriented transactions. Many are now embedding continuous transformation mindsets into their corporate strategy, emphasizing agility, talent development, and leveraging technology—particularly generative AI—to drive long-term value.
Despite this optimism, caution persists. Geopolitical uncertainties—including trade tension, regulatory scrutiny, and global fragmentation—are viewed as increasing risk factors that could complicate deal execution. Accordingly, CEOs are applying more rigorous due diligence, focusing on integration capabilities, and prioritizing sectors with clearer regulatory outlooks.
In practice, many firms are already reshaping portfolios to strengthen strategic resilience. The 48% of CEOs considering divestments or carve‑outs reflect a dual approach: shedding non-core assets while acquiring new capabilities in high-growth areas. This approach aims to sharpen focus on core competencies and calibrate risk exposure.
Lower interest rates remain a powerful enabling force. With U.S. Treasury yields and global borrowing costs easing, capital markets are once again providing funding conducive to large-scale acquisitions—benefiting both mega-corporations and deal-hungry private equity firms . Complementing this, U.S. policy clarity following the November election—particularly expectations of business‑friendly reforms under President Trump’s second term—has reinforced executives’ confidence.
The resurgent outlook carries implications across the economy. For advisors and investment banks, activity in M&A pipelines is accelerating. Businesses that faced funding and regulatory headwinds in 2023 now find richer terrain for strategic growth through mergers. For target companies, this surge offers opportunities for integration, consolidation, or eventual exit.
Still, risks remain. Swift changes in interest rates, or renewed geopolitical tensions, could reset deal appetite. Effective integration of acquisitions, cultural cohesion, and value realization will be critical tests for companies executing big-ticket M&A.
Looking ahead, EY suggests that the coming year may mark a turning point: a transition from lurked caution to dynamic execution. Throughout 2025, the interplay of capital conditions, policy stability, and strategic urgency is expected to shape a renaissance in dealmaking—potentially reshaping industry dynamics for years to come.
