Business mergers and acquisitions rebound during economic turbulence, while Donald Trump administrates trade regulations
Robust M&A Activity Thriving in the U.S.
The first half of 2025 is witnessing a surge in M&A activity in the United States, with corporate dealmaking reaching levels not seen since 2022. This spike in activity reveals a resilient appetite for mergers and acquisitions, despite market volatility, global conflicts, and shifting trade policies [WSJ].
According to data from the London Stock Exchange Group, the total value of U.S. deals through June 25 has climbed approximately 10% compared to the same period last year, hitting a three-year high.
Early in the second quarter, dealmaking momentum stalled due to President Trump's broad "Liberation Day" tariffs. However, activity has since rebounded, with several signification transactions taking place across less affected sectors.
Notable transactions include Charter Communications agreeing to acquire Cox Communications for nearly $22 billion, consolidating the broadband and cable market. In the tech sector, Salesforce revived its approximately $8 billion acquisition of Informatica, a move that underscores the industry's push to strengthen AI capabilities. Footwear brand Skechers also made headlines with a deal to take the company private, valued at over $9 billion.
Interestingly, despite the rise in total deal value, the overall number of transactions has fallen by 16% this year. This decline is primarily driven by fewer deals under $1 billion, which traditionally make up the bulk of market activity.
Advisers suggest that some acquirers are holding back, waiting for more economic clarity before pursuing major transactions. Despite this, Wall Street still anticipates a robust M&A cycle under Trump's administration, although the timing may extend beyond initial expectations.
Private equity has continued to play an outsized role in the market. LSEG reports that private-equity-backed deals are up nearly 21% in value so far this year, although the number of transactions has dropped by 20%.
As we move into the second half of the year, conditions appear to be aligning for stronger dealmaking. If inflation cools further and the Federal Reserve moves to lower interest rates, deal activity could accelerate even more [WSJ]. Capital remains available, and private equity firms are under pressure to deliver returns to investors while putting their raised funds to work.
Additionally, the market for new stock offerings is showing signs of revival. Major U.S. indexes have rebounded following the initial turbulence from President Trump's tariffs. Recent IPOs have added to the optimism, with companies like virtual physical therapy provider Hinge Health and Circle Internet Group, a cryptocurrency company, experiencing strong debuts.
Private Equity Trends
- Private equity remains actively involved in M&A, with first-half deal dollars increasing by 24.2%, despite a 22% drop in the number of deals [LSEG].
- Domestic PE buyers are among the most active acquirers, with 44% of market participants expecting this trend to continue in 2025, particularly in the U.S. [1].
- Private credit is becoming an increasingly important financing source for M&A, often filling gaps where traditional financing is constrained due to economic or political volatility. Around 25% of respondents expect private credit to be the most important form of financing for deals over the next two years [1].
Strategic Focus Areas
- CEOs are focusing on reshaping value chains, technology platforms, and customer engagement models to stay competitive in a rapidly evolving business landscape [1].
- Large deals in diverse sectors like retail, financial services, and technology highlight the broad impact of M&A across the U.S. economy [4].
These trends indicate a confident yet cautious M&A environment where major players, particularly private equity firms, are shaping the dealmaking landscape across multiple sectors in the United States in 2025 [1][2][3][4].
Sources:[1] Deloitte - 2025 Middle Market M&A Outlook[2] Bain & Company - 2025 Global Private Equity Report[3] Dealogic - Mergers & Acquisitions Database[4] The Wall Street Journal - Articles on prominent M&A transactions in 2025
- The surge in M&A activity in the United States has seen private equity firms significantly increasing their involvement, with first-half deal dollars rising by 24.2% despite a 22% drop in the number of deals.
- Beyond M&A, CEOs are strategically focusing on reshaping value chains, technology platforms, and customer engagement models, demonstrating a confident yet cautious approach to staying competitive in a rapidly evolving business landscape, particularly under the current American economic climate.
