Five key takeaways from The M&A Summit 2025

Global M&A activity is on the rise. Renewed confidence, falling interest rates, and abundant private equity capital are creating favorable conditions for dealmaking.

These trends set the backdrop for The M&A Summit 2025, where senior dealmakers, investment bankers, private equity leaders, lawyers, and regulators explored the outlook for the year ahead.

Here are my five key takeaways from the event.

1. Positive sentiment is returning to the global market

Deal activity is picking up, with both confidence and motivation finally returning after the slowdown that followed 2021.

Derek Shakespeare, Chairman of EMEA M&A at Deutsche Bank, described 2021 as a turning point: “In some ways, that year was the crest of a wave of globalization, and the vibe shift was sudden after that. The anticipation and reality of the change of administration in the US led to a downturn in dealmaking.”

He highlighted renewed international investment into the US: “Companies outside the US are now making significant investments in the region, particularly in manufacturing and engineering firms.”

Chris Emmerson, Managing Director at Goldman Sachs, summed up the broader shift in mindset: “Last year, people were trying to find a reason not to get the deal done, but today are asking, ‘How do I get the deal done?'”

2. Private equity firms are under pressure to deploy capital

Private equity deal activity peaked in 2021, and with many investments now approaching the end of their planned holding periods, firms face growing pressure to deliver returns ahead of raising future funds.

Emmerson explained: “There’s capital to deploy, and assets have been held for longer than originally planned, so there’s a growing need to look for exits. The impact of that is already being seen, with activity up around 40% this year.”

While this is already a significant surge, Emmerson expects it to continue: “There is a good pipeline of assets for next year, so this level of activity is likely to be maintained.”

3. The CMA is opening the door for UK dealmaking

The UK’s regulatory environment is becoming more supportive, helping deals move faster. Will Pearce, Partner at Davis Polk, noted, “The CMA (Competition and Markets Authority) is taking a more open approach, making processes more predictable.”

Recent proposals aim to make merger remedies more flexible. Companies now have clearer guidance on when behavioral remedies are likely to be accepted, while structural remedies remain an option where needed.

The changes support deals that create “rivalry-enhancing efficiencies” or other customer benefits, helping growth-oriented transactions navigate regulatory approval more smoothly.

Even with a more predictable CMA process, some deal outcomes remain uncertain. Pearce added, “PE professionals are using tools such as earnouts and continuation funds,” which help align incentives, bridge valuation gaps, and structure transactions to manage timing and regulatory uncertainties.

4. AI is driving investment and changing how deals get done

Artificial intelligence is influencing both market activity and M&A workflows.

Mark Rushton, Managing Director and Co-Head of European M&A at RBC Capital Markets, called AI the “industrial revolution of the 21st century,” noting, “The infrastructure required to store and power AI is focusing a lot of investment and, as a consequence, M&A.”

Excitement is being driven by early-stage investments as companies look to secure a strong position in the rapidly evolving AI market. Rushton explained, “There’s a huge amount of growth potential in AI and companies are willing to pay for that now to ensure they’re well positioned as the market evolves.”

Koundinya Challa, Vice President at JPMorgan, discussed AI adoption at his firm: “JPMorgan has its own large language model (LLM) and we’re investing a lot of money in this technology. What’s been fascinating is how fast adoption has been. Banks are traditionally quite risk-averse, but it’s moving very quickly.”

Dmitry Zaporozhskiy, Partner at Eilla AI, added, “For smaller deals, AI is already helping increase the velocity of transactions, automating target research as well as management presentations.” 

At Citi, this trend is evident across the firm: more than 180,000 employees use AI tools, including one that automates tasks traditionally handled by junior bankers, pulling data from multiple sources and generating presentations.

5. New geographies and sectors are attracting attention

Dealmakers are increasingly looking beyond traditional markets. Shakespeare pinpointed Japan as a region to watch over the next five years: “With changes in the economic management of Japan, we will see it back on the global stage.”

At the same time, once-overlooked sectors are gaining traction. “In Europe, industries such as defense are now front and center after previously being on everybody’s ‘naughty list,’” he noted. 

Geopolitical tensions and capacity gaps in EU military capabilities have made defense a bright spot for European dealmaking, with A&O Shearman reporting a 35% year-over-year increase in European defense M&A.

Shakespeare also highlighted the continued relative appeal of the UK: “Talking to international clients, the UK is often viewed as less imperfect than others. Its floating currency and exchange rate provide a bit of a cushion, which means it continues to attract investment.”

Moving from caution to action

There’s a palpable energy returning to the M&A market. Walking around the Summit, speaking with dealmakers, PE leaders, and advisors, it was clear that confidence is back, capital is available, and opportunities are emerging.

What stood out most was the shift in mindset. People aren’t just talking about deals; they’re focused on getting them done. Being part of those conversations and hearing investment strategies debated made it clear that the market is on the cusp of an exciting period.