A significant resurgence in global mergers and acquisitions (M&A) is projected to achieve a remarkable total deal value of $4.8 trillion in 2025, marking the second-highest figure in history. This represents a 36% increase compared to 2024, according to a report released by Bain & Company. The expected rise in deal value is largely driven by a wave of megadeals, specifically those valued at $5 billion or more, as companies traditionally categorized as infrequent acquirers are now making substantial commitments in the market.
Despite only a 5% increase in the overall number of deals, the strategic value of transactions exceeding $5 billion contributed to approximately 75% of the growth in deal value for the year. Notably, around 60% of these larger transactions involved companies that typically engage in M&A less frequently. Bain’s analysis indicates that almost two-fifths of these high-value deals were transformative, representing more than 50% of the acquirer’s market capitalization.
Technology and Advanced Manufacturing Lead the Way
The technology sector, propelled by artificial intelligence (AI) initiatives, has taken the lead in the M&A landscape, with a staggering 76% surge in deal value, reaching $478 billion year-to-date. Nearly half of all strategic technology deals valued above $500 million included AI-native companies or focused on AI benefits. Advanced manufacturing has also played a significant role, with its deal value rising by 38% to $717 billion thus far.
Geographically, this M&A rebound is evident across various regions. The United States remains a driving force, accounting for nearly 50% of total strategic deal value in 2025. Greater China ranks as the second-largest market in terms of deal count, largely due to a robust domestic market that constituted over 80% of Greater China’s deal value. Japan’s M&A market experienced remarkable growth, doubling in value to become the third-largest globally, while Europe, the Middle East, and Africa also saw substantial increases in deal value, despite a 7% decline in overall deal count.
Factors Fueling the M&A Surge
Bain’s report identifies several factors driving the surge in M&A activity, including improved regulatory conditions, a decrease in capital costs, and a narrowing buyer-seller valuation gap. Current valuations have climbed to an average of 11.6x EV/EBITDA, remaining below peak levels from 2021. Many executives have concluded that delaying strategic actions is less viable, particularly in light of the disruptions caused by rapid advancements in AI.
The central role of strategy emerged as the predominant reason for increased deal-making, with over 85% of more than 300 M&A executives surveyed by Bain indicating that they had updated their M&A pipelines in response to shifts in technology and strategic priorities. Despite concerns regarding tariffs and trade turbulence, the impact on deal-making has been limited, with a majority of M&A executives stating that trade policies would not significantly influence their divestiture plans.
As companies navigate a changing landscape marked by post-globalization trends and increased protectionism, Bain suggests that M&A can provide essential market access and flexibility. However, executives may face heightened scrutiny regarding capital allocations as they prioritize investments in resilience and technology infrastructure.
The report also highlights AI’s growing presence in the M&A space, with 75% of strategic acquirers evaluating AI’s impact on their targets. Furthermore, the use of AI by M&A professionals has more than doubled, with 45% of practitioners incorporating the technology into various aspects of deal-making, including planning and integration.
As the M&A landscape evolves, a notable shift towards scope deals is occurring. In 2025, 60% of deals valued at over $1 billion were scope deals aimed at expanding into new markets and customer segments, the highest proportion recorded to date. This trend highlights a strategic focus on top-line growth and the integration of new capabilities.
Looking ahead, Bain & Company plans to release its comprehensive 2026 Global M&A Report in January, featuring detailed analyses and insights into future deal-making trends across key industries.
