Global Acquirer Trends, Q3 2025: Steadiness Conceals Early Momentum

Key Trends

• Global deal activity stabilised in Q3 2025, with total transaction volumes at 7,939, up 2% on Q2 but 24% lower year-on-year.
• Cross-border investment remains subdued as lingering trade tensions and market uncertainty weigh on acquirer and investor confidence.
• Domestic M&A was up modestly in the quarter, with Continental Europe seeing a 50% jump in Q3, although volumes were down compared with the same period last year.
• Sectoral activity remains concentrated across Business Services and TMT, with overall investor sentiment still cautious.

Global M&A Holds Steady Amid Uneven Regional Dynamics

The latest Global Acquirer Trends data for Q3 2025 points to a period of stabilisation. After several quarters of contraction, reported global M&A volumes steadied at 7,939 deals in Q3 2025, a marginal quarterly rise over Q2 but a 24% decline year-on-year. This reflects a persistently cautious environment whereby execution is constrained by geopolitical uncertainty, high borrowing costs and uneven growth expectations.

Cross-border investment remained subdued in Q3. Inbound transactions into major regions were broadly stable, with North America recording 768 inbound deals and Continental Europe 453. Both figures represent slight quarterly improvements but remain below 2024 levels, as companies continue to rein-in their cross-border ambitions amid market and tariff uncertainty. The UK & Ireland (180), Nordics (167) and APAC (629) also recorded steady inbound activity.

Domestic deal activity showed more variation across regions. North America reported 1,868 domestic transactions, broadly unchanged from the prior quarter, while Continental Europe posted 1,188, a significant 50% quarterly increase signaling that local market confidence is strengthening from a low base. The UK & Ireland (492), Nordics (386) and APAC (1,485) each saw modest reductions in activity. Overall, domestic M&A was up modestly on the previous quarter and continued to underpin overall M&A activity, offsetting weakness in cross-border flows.

Sector Trends: Selective Activity

Industry sector performance mirrored the broader market trend of cautious stabilisation. Business Services (2,906) and Media & Technology (2,067) together accounted for more than half of total global M&A volumes, though both remain below pre-2022 levels. Industrials (1,481) and Consumer (933) sectors remain subdued, reflecting weaker demand and higher input costs, while Pharmaceuticals (537) continue to show limited momentum despite resilient fundamentals.

Private equity remains active, but the deployment of capital is still selective. Funds are focusing on smaller, strategic transactions - often for existing platform businesses - amid valuation gaps and high financing costs. Yet the combination of vast undeployed capital and signs of an easing in the interest rate environment is spurring confidence. Sponsors are beginning to test the market for larger transactions, spurred by a flagging IPO market to explore M&A and other avenues for their largest exits.

Outlook: Growing Momentum

Deals may have been steady in Q3, but sentiment appears to be shifting. While volumes may currently be flat, the emergence of several megadeals - such as the recent $55bn leveraged buyout of Electronic Arts - suggests that a rebound may be starting to take shape. Companies are once again pursuing scale as boards look to re-energise growth plans and investors reward conviction.

Artificial intelligence is emerging as a defining theme within this trend. From software to infrastructure and semiconductors, AI-linked assets are driving some of the most competitive bidding in global M&A. Boards across most sectors are now factoring AI into their acquisition strategies, whether as a source of competitive advantage, an operational enabler, or a way of protecting their business models. Businesses across all sectors that are not addressing AI directly in their strategies may find themselves un-transactable.

As inflation eases across most major economies and central banks signal rates cuts in early 2026, the preconditions for a broader rebound are beginning to fall into place. If financing costs moderate and growth expectations firm, deal volumes could accelerate from this steady base.

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