Trending Topic: Mergers and Acquisitions Surge Signals Robust Economic Activity
London, UK – August 21, 2025 – Corporate heads at leading law firms, including Freshfields Bruckhaus Deringer, Linklaters, and Clifford Chance, are reporting a significant uptick in the mergers and acquisitions (M&A) pipeline, signaling a robust recovery in dealmaking activity, according to a Law.com report published on August 20, 2025. The surge, described as a “gradual crescendo” by Goldman Sachs’ M&A co-heads Stephan Feldgoise and Mark Sorrell, reflects easing market volatility, declining borrowing costs, and increased private equity activity, with deal volumes projected to rise by approximately 10% in 2025 following a similar increase in 2024.
Driving Forces Behind the M&A Boom
The revitalized M&A landscape is propelled by several key factors. A decline in borrowing costs has made financing more accessible, while private equity firms are deploying capital at rates nearing historical averages, driven by pressure to return funds to investors. Strategic corporate repositioning is also fueling activity, with companies seeking scale through acquisitions to diversify supply chains, enhance product portfolios, and strengthen balance sheets. Sectors like technology, healthcare, and renewable energy are leading the charge, with notable deals including a €1 billion merger advised by Norton Rose Fulbright (NRF) and Gleiss Lutz to create Europe’s largest dairy cooperative, and White & Case guiding CVC’s €1 billion joint venture with Therme Group for spa and wellness destinations.
The report highlights specific transactions underscoring this momentum. Morrison Foerster, White & Case, and Nagashima Ohno & Tsunematsu advised EQT on a deal involving Innolux subsidiary CarUX Holding, while Australia’s Allens supported Brookfield’s $2.5 billion sale of retirement living provider Aveo, marking Australia’s largest-ever direct real estate transaction. These deals reflect a broader trend of cross-border activity, particularly in technology and healthcare, where innovation and market access are key drivers.
Regulatory and Market Dynamics
Despite the optimistic outlook, challenges persist. Heightened regulatory scrutiny, particularly under the UK National Security and Investment Act, complicates cross-border deals in sectors like defense and technology. Primas Law notes that AI-driven acquisitions are gaining traction, with UK-based companies holding valuable AI intellectual property attracting significant interest. However, valuation discrepancies in volatile markets can lead to protracted negotiations, as highlighted in a 2025 Primas Law report, which emphasizes the need for robust valuation methodologies to navigate competitive bidding.
WilmerHale’s podcast, In the Public Interest, featuring partner Keith Trammell, explores the impact of the Trump administration’s pro-business policies on M&A. Deregulation is expected to boost deal activity, but potential tariffs could introduce long-term market uncertainties. Trammell noted that M&A drives economic growth by enabling companies to enter new markets, create synergies, and foster innovation, though a slowdown could stall broader economic progress.
Industry Sentiment and Outlook
The sentiment among law firm leaders is cautiously optimistic, with volatility easing and deals closing at a faster pace. A&O Shearman, formed by a major 2024 merger, and other firms like Troutman Pepper Locke, resulting from a 2025 combination, are capitalizing on the M&A surge to strengthen their market positions. Posts on X reflect industry enthusiasm, with users citing increased deal flow as a sign of economic resilience, though some express concerns about regulatory hurdles and geopolitical risks.
As the M&A pipeline grows, law firms are positioning themselves to handle complex transactions, leveraging advanced analytics and AI to streamline due diligence and target identification. The momentum, as described by corporate heads, suggests a dynamic year ahead, with strategic acquisitions and private equity exits poised to reshape industries in 2025 and beyond.
Sources: Law.com, WilmerHale.com, PrimasLaw.co.uk, GoldmanSachs.com, News.BloombergLaw.com