Global Acquirer Trends, Q2 2025: Caution Continues
Key Trends
- Global deal activity is stabilising, with Q2 2025 deal volumes flat compared to Q1 albeit still down 27% on Q2 2024
- Cross-border investment activity stuttering amid trade and tariff uncertainty
- Domestic deal volumes in Continental Europe see a decline, UK & Ireland and APAC see slight increases
- Investor caution spans all industry sectors, with volumes down materially year-on-year
- Recovery in public market equities signal a possible turning point in H2 2025
Global Investment Remains Subdued Amid Ongoing Uncertainty
The latest Global Acquirer Trends data for Q2 2025 underscores sustained investor caution, driven by elevated geopolitical tensions and broader economic challenges. Reported global deal volumes stood at 7,776, a minimal increase of just 0.01% or 176 deals from the previous quarter. This represents a stabilisation at lower levels without any certainty of recovery, as high-interest rates and persistent – albeit normalising - inflation continue to restrain corporate borrowing and investment. Notably global deal volumes were down 27% when compared to 12 months ago.
Cross-border investments have been markedly impacted by the escalation of global trade tensions following retaliatory tariffs introduced in early April following ‘Liberation Day’. Inbound transaction flows into North America and Continental Europe remained subdued, numbering 402 and 648 versus 443 and 736 in Q1 2025 respectively. Companies are increasingly wary of cross-border risk exposures given unresolved geopolitical conflicts, particularly in Ukraine and the Middle East.
Domestic transaction activity also reflects widespread investor caution, though performance has varied regionally with signs of optimism. North America reported near identical domestic M&A activity with 1,987 transactions versus 1,984 in the previous quarter, however this represents a drop of 27% or 743 deals compared to Q2 2024. Domestic volumes in Continental Europe were slightly down 3.6% compared to 822 in Q1 and down substantially by 41% compared to the same period in 2024. Deal volumes in the UK & Ireland (519 versus 428 in Q1), the Nordics (409 versus 290 in Q1) and APAC (1,740 versus 1,694 in Q1) all increased, reflecting improved confidence in these regions.
Sectoral performance continues to reflect overall market caution, with Consumer, Business Services, Industrials, Pharmaceuticals and TMT sectors specifically experiencing muted activity. These areas remain highly sensitive to unresolved global trade tensions, persistent inflation and elevated interest rates.
Signs of a Turning Point
The cautious sentiment from Q1 has persisted through Q2, as the macroeconomic landscape remains uncertain. Despite enduring strategic interest in mergers and acquisitions, driven by private equity deployment and technological advancements, market uncertainty continues to severely restrict execution.
Yet signs of a turning point are emerging. While M&A remains in a holding pattern, public equity markets have shown stronger performance in recent months, suggesting a gradual return of investor confidence. Private equity firms, under intensifying pressure to deploy dry powder and achieve realisations, face increasing imperative to act. If this momentum continues to build, it is likely to serve as a catalyst for a rapid recovery in dealmaking.
In that context, Europe may be well positioned, with the region capturing a growing share of institutional allocations in recent months. If broader risk appetite returns, these dynamics could support a significant recovery in activity.
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