Outlook for M&A and Activism in 2025
Many have predicted an M&A boom in 2025 and recent CEO surveys exhibit rising confidence. Psychology is as important to the merger market as any human endeavor, so one should not discount the power of renewed optimism to be a self-fulfilling prophecy. We expect reality to be more nuanced, however, although 2025 should be a […]
Kyle A. Harris and Kimberly R. Spoerri are Partners at Cleary, Gottlieb, Steen & Hamilton LLP. This post is based on their Cleary Gottlieb memorandum.
Many have predicted an M&A boom in 2025 and recent CEO surveys exhibit rising confidence.
Psychology is as important to the merger market as any human endeavor, so one should not discount the power of renewed optimism to be a self-fulfilling prophecy. We expect reality to be more nuanced, however, although 2025 should be a strong year (the usual caveats about fiscal and macro uncertainty aside).
On the corporate side, as in recent years, portfolio reshaping and de-conglomeration will remain a significant driver of transactions, as the market continues to reward simplicity and focus. We also expect elevated interest in cross-border transactions into the U.S. from European corporates looking for greater exposure to the higher-growth U.S. market.
Ultimately, however, private equity will need to be a key driver of the rebound.
