Global M&A is resilient despite 2025 disruptions: New research

Tariffs, shifting trade policies and growing regulatory scrutiny unsettled dealmakers in the first half of 2025. Transactions that had appeared straightforward suddenly demanded deeper diligence and more cautious decision-making.

Yet beneath this disruption, dealmaking proved more resilient than many expected. Our M&A Outlook 2026 shows how dealmakers adapted to the changing environment, allowing activity to regain momentum later in the year.

Early confidence was tempered by disruption

New analysis of transactions opened and managed through the Ideals Virtual Data Room shows deal activity started strongly in 2025, with data rooms created on the platform growing 7% year-on-year in the first quarter.

But that confidence quickly weakened as geopolitical tensions escalated. By the second quarter, data room openings had fallen 2.5% year-on-year as buyers and sellers paused transactions.

External research supports this trend. PwC reported that around a third of US deals were paused or restructured in May, while a Norton Rose Fulbright survey found two-thirds of dealmakers had reduced their appetite for acquisitions during the same period.

Momentum returned in H2

By the second half of the year, however, dealmaking began to recover as tariff risks and policy shifts became clearer and teams adjusted their expectations. Transactions that had paused started to move again, with our analysis showing data room openings finished 3% higher year-on-year.

The broader market reflected the same shift. According to Boston Consulting Group, global deal value in the second half of 2025 was 40% higher than in the first half, driven by large, strategic transactions.

“The first half of the year was about caution,” explains Deven Monga, VP of Sales, North America at Ideals. “Then, once the uncertainty they faced became more quantifiable, dealmakers moved decisively. The rebound in H2 shows the market’s pause wasn’t a retreat, but a recalibration.”

Dealmakers remained resilient through uncertainty

Despite the turbulence, one key metric changed very little: deal timelines. The average M&A transaction took 264 days to complete in 2025, only 3% longer than in 2024, according to our data.

At a time when regulatory scrutiny, diligence requirements and stakeholder involvement are all increasing, that stability is notable.

“The perceived volatility around tariffs and policy shifts was largely overblown,” says Sanjar Abdurakhmonov, Vice President at Citi. “Dealmakers quickly recognized these risks were now known rather than unknown – part of the new normal – and this allowed markets to continue moving forward.”

Not all markets are equal

Although global deal timelines remained broadly steady, disruption affected markets differently depending on where deals took place.

In the United States, transactions progressed slightly faster than the previous year, even as deal activity increased. Strong buyer demand and familiarity with large, complex transactions may have helped deal teams maintain momentum, despite a volatile environment.

Deal timelines in Asia and Oceania also shortened, falling 11% year-on-year — the largest regional improvement in our data. Analysis from A&O Shearman suggests that regulatory reforms and clearer market rules in several jurisdictions helped streamline execution, allowing deals to move forward even as global uncertainty persisted.

Across Europe, however, the picture was markedly different. Additional regulatory scrutiny and more structured diligence processes impacted deal speed, stretching timelines by 6% year-on-year.

Could AI change the pace of deals?

In a global market increasingly shaped by disruption, deal teams are turning to AI to help manage complexity and respond quickly to changing conditions.

Research from Bain suggests 45% of M&A practitioners already use AI, while McKinsey reports that 40% of deal teams have seen cycles accelerate by 30-50% in certain phases of the process. Our latest AI research shows that two-thirds of M&A professionals are leveraging AI or automation tools, with 59% citing increased efficiency and speed as the primary benefit.

But those gains have not yet translated into shorter overall deal timelines. “Just like we saw with computers, AI is changing how deals are done without immediately shortening closures,” explains Sanjar. “Deeper analysis and higher multiples mean teams are doing more work, and efficiency gains are balanced by the need for greater precision.”

As adoption grows, AI could eventually reshape how quickly deals move from sourcing to close. For now, however, the defining story of 2025 is resilience: a market that slowed under pressure, adapted quickly to disruption and regained momentum.

Explore the full analysis in our M&A Outlook 2026.