After several cautious quarters and a global recalibration, M&A is back with energy, strategy and optimism. The first quarter of 2025 didn’t just get off to a good start—it set a confident tone for the year ahead. With over $1 trillion in deal value and bold activity across sectors and regions, dealmakers worldwide are showing they’re ready to seize new opportunities in a market that finally feels increasingly stable and energised.
Global Deal Value Crosses $1 Trillion
Global M&A deal-making kicked off 2025 with a bang—$1.05 trillion in combined deal value across 12,371 transactions – including estimates for undisclosed values and late-reported deals. This marks an 18% increase in value from Q1 2024, when deal volume sat at approximately $850 billion. That’s a powerful signal that confidence is returning to boardrooms, balance sheets are strong, and capital is being put to work with purpose.
Regional Highlights:
- North America (defined as the U.S., Canada and Mexico) led the charge with $613.8 billion in deal value.
- Europe showed impressive resilience, especially in deal count, which outpaced historical averages.
- Asia and Latin America saw strategic megadeals, including the headline-making Panama Ports acquisition.
U.S. and Europe: Resilient and Ready
The U.S. M&A market came out strong, driven by megadeals in technology, finance and energy. North America dominated the global leaderboard, accounting for 80% of the top 10 largest deals. Despite some mid-quarter caution linked to tariff concerns, the region’s momentum suggests underlying strength and deal-readiness.
Meanwhile, Europe held its own with impressive consistency. While deal value slipped slightly from a strong Q4 2024, Europe posted a 36% increase in deal count over its 10-year quarterly average. Notably, lower valuations in Europe (EV/EBITDA at 8.9x vs. 9.5x in the U.S.) are attracting capital as investors pivot from overpriced U.S. assets to undervalued European opportunities.
Valuations Normalise – And That’s a Good Thing
After a rollercoaster few years, deal valuations have stabilised at levels that both buyers and sellers can agree on. The median EV/EBITDA multiple remained steady at 9.6x, and EV/revenue stuck at 1.6x, bringing the market in line with pre-pandemic norms.
This consistent pricing environment is creating clarity and boosting momentum:
- Europe’s 8.9x EV/EBITDA leaves room for upside.
- North America’s 10.8x reflects premium positioning for strategic assets.
- Public markets are slowly aligning, signalling potential IPO tailwinds in the quarters ahead.
Impact Sector Highlights: Innovation & Transformation Drive Deals
Some impact-focused sectors are catching fire early in the year, driven by long-term trends and innovation.
Top performers:
- Healthcare leads the charge with a staggering $32.1B invested — reflecting surging demand for medical innovation, digital health and biotech breakthroughs.
- Materials & Resources pull in $5.6B, highlighting growing momentum in sustainable supply chains, circular economy models and critical materials vital to the green transition.
- Energy sees $3.6B in capital, underlining investor appetite for clean energy, grid innovation and climate resilience tech.
Full Speed Ahead—With Purpose
Q1 2025 delivered what many in the M&A world were hoping for: clarity, activity and momentum. The stage is now set for a year that could be a true comeback story, not through flashy valuations, but through smart, strategic moves.
If the rest of the year follows Q1’s lead, we’re looking at a 2025 defined not just by more deals, but better ones. However, the full effects of the tariffs introduced by Donald Trump are yet to be seen and may well alter the M&A picture for Q2.
Statistics Source: Pitchbook
