Our latest study highlights the most important trends and challenges for mergers and acquisitions (M&A). One key finding is that decision-makers at German corporates and private equity firms expect deal activity to increase in 2025 despite persistently uncertain market conditions. Sustainable, strategic growth continues to be the primary business goal for companies. 77 percent of respondents are planning at least one deal in 2025. While acquisitions continue to be among the leading deal structures, joint ventures and strategic alliances are also gaining in terms of importance.
Michael Buhl
Divisional Head of Deal Advisory
KPMG AG Wirtschaftsprüfungsgesellschaft
Key takeaways at a glance
Transact to transform
Companies are using M&A to reshape their business models and to acquire the AI and digitalization capabilities they need. Technology transactions made up the majority of deals in 2024.
Geopolitical risks
Cybersecurity threats are considered the key geopolitical risk facing deals, while ongoing political conflicts and elections play only a minor role in deal considerations.
Getting a deal done
Valuation differences between buyers and sellers and legal disputes still represent the biggest challenges in dealmaking.
Interest rate environment
Most companies view stable interest rates at the current level as an appropriate basis for maintaining their current deal volume. However, interest rates need to decline substantially before there is a significant increase in M&A activity.
Deal activity in 2025
77 percent of respondents are planning at least one deal in 2025 and expect the overall M&A market to grow.
Study
Our study provides valuable insights into current and future M&A trends and challenges. To shed light on these dynamics, we present our first M&A Outlook 2025 for German corporates and private equity firms. We surveyed around 200 M&A decision-makers from the end of October to mid-November 2024 to explore how current market conditions are influencing transaction activity. We examined the extent to which companies and private equity firms are planning M&A strategies, the types of deals they anticipate and the primary drivers and obstacles shaping the market. This also allowed us to compare the perspectives between corporate and private equity investors.
