M&A deal timelines shorten for first time in four years: New report
M&A deal timelines have steadily increased since 2019, but new data reveals they stabilized in 2024. Could this signal the start of a turnaround?
Our latest research, based on anonymized data from Ideals M&A customers on both the buy and sell sides, shows the average time to complete a deal fell to 255 days in 2024 — a 4% decrease from 2023. While modest, this marks the first improvement in deal timelines in four years.*
US accelerates deal speed
North America experienced the largest year-over-year reduction in deal timelines, with the average duration falling from 271 to 252 days. Asia and Oceania saw modest gains, while Western Europe remained unchanged — indicating stabilization after years of steadily rising timelines amid an M&A slowdown.
We’re seeing more dealmakers turn to private credit for its flexibility and competitive terms.
Deven Monga, VP Sales, North America at Ideals
Lower interest rates and increasing credit options likely contributed to these shifts. Following the U.S. Federal Reserve’s first rate cut in four years, financing conditions became more favorable.
“While traditional leveraged structures are in play, we’re seeing more dealmakers turn to private credit for its flexibility and competitive terms,” says Deven Monga, VP of Sales, North America at Ideals.
Technology leads in deal speed
Deals in the IT & Services sector averaged 244 days in 2024 — 13% faster than the industry average. PwC notes that while geopolitical uncertainties and trade challenges persist, the AI boom is creating new opportunities and driving significant capital investment in the sector.
Data centers, fiber networks, and cybersecurity platforms are all seeing increased demand.
Chin-Harn Leong, Partner, TMT Transaction Services at KPMG
Chin-Harn Leong, Partner in TMT Transaction Services at KPMG and one of our expert contributors to the report, sheds light on this trend:
“There’s heightened interest in the infrastructure that enables the AI ecosystem. Data centers, fiber networks, and cybersecurity platforms are all seeing increased demand,” he says.
By contrast, highly regulated sectors experienced longer timelines. Environmental & Utilities deals averaged 351 days, and Energy & Mining 349 days — both well above the industry average and significantly higher than in 2023.
AI reshapes due diligence processes
Not only are deals in the Technology sector speeding up, but technology itself is becoming a key driver of M&A efficiency. AI and data analytics help deal teams uncover insights faster and flag risks earlier during due diligence.
“AI compresses processing time and sharpens risk identification, enabling a more rigorous, data-led approach to diligence,” explains Chin-Harn.
As adoption grows, dealmakers are moving faster and more confidently. Automation is streamlining tasks like contract review, risk flagging, and financial analysis, helping reduce friction in early-stage deal assessments.
Geopolitical headwinds introduce new risks
Despite these positive developments, geopolitical challenges threaten to slow momentum.
The reintroduction of tariffs under the Trump administration, along with heightened scrutiny of foreign investments, is adding complexity to global deals. Teams are digging deeper into supply chains, legal exposure, and geopolitical risks, alongside traditional financial metrics.
Stringent screening of cross-border investment is inevitably suppressing M&A activity.
Sabine Schilg, VP of Corporate Development at Ideals
“We’re already seeing more stringent screening of cross-border investment, which is inevitably suppressing M&A activity and contributing to delays in getting deals done,” says Sabine Schilg, VP of Corporate Development at Ideals.
Encouraging signs, but momentum remains uncertain
The 4% drop in average deal timelines is a welcome improvement after several challenging years. However, this momentum remains fragile amid shifting financing conditions, tariff-related uncertainties, and demanding due diligence requirements.
For a comprehensive view with detailed insights across regions, industries, and deal dynamics, access the M&A Deal Trends Report 2025.
Methodology
The M&A Deal Trends Report is based on anonymized data collected from our Virtual Data Room customers on the buy and sell sides of M&A deals. We calculated the deal duration as the time between the first non-admin invited and the closure of the room. We also measured the number of hours spent working on documents within the room.
*Deal duration is classified as time between the first non-admin invited to the Ideals VDR and room closure.