Global law firm Norton Rose Fulbright, in partnership with Mergermarket, has published the third edition of its Global M&A Trends and Risks report, revealing how geopolitical and macroeconomic shifts are reshaping the dealmaking landscape.

The report draws on a survey of 200 senior executives conducted across the first half of 2025, capturing evolving attitudes amid a volatile global market.

In the early part of the year, over half of respondents (53%) anticipated an increase in their organisation’s appetite for mergers and acquisitions in 2025 compared to the previous year. However, that confidence has since been dampened by mounting trade tensions, with over two-thirds of respondents later stating that the announcement of “reciprocal tariffs” had reduced their interest in pursuing deals.

The report also highlights the rapid adoption of artificial intelligence across the M&A process. More than half (51%) of those surveyed said they had already acquired an AI business, while 46% reported they are actively looking to do so in the near future — a sharp rise from 33% in 2024.

Representations and warranties insurance (RWI) is also gaining momentum globally, with nearly 65% of respondents predicting an increase in its use over the next year.

Notably, 37% expect that increase to be significant, up from 26% in last year’s report. The trend is especially pronounced in the Middle East and South and Southeast Asia, where more than 45% of respondents in each region forecast a significant uptick in RWI adoption.

As geopolitical instability persists, strategic buyers are expected to focus more on domestic targets. This shift is most prominent in emerging markets such as Latin America (74%), Africa (61%), and South and Southeast Asia (57%), where respondents believe local players will dominate acquisition activity.

Financing continues to be a pressure point for dealmakers. More than a third (35%) expect it will become more difficult to secure M&A-related financing in 2025 compared to 2024. In response, private credit is emerging as a critical alternative, with 25% of executives naming it the most important financing tool for deals over the next two years. This form of capital is seen gaining traction particularly in Africa, the Middle East and Southeast Asia.

Private equity firms, both domestic and international, also look set to play a key role in the year ahead. Forty-four percent of respondents expect domestic PE buyers to be among the most active acquirers in 2025, particularly in South and Southeast Asia (49%). International private equity activity is projected to be strongest in East Asia (41%), Europe (41%), and Australia and New Zealand (43%).

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Raj Karia, Norton Rose Fulbright’s global head of corporate, M&A and securities, said: “We’re seeing a clear shift in how clients approach M&A, with a move towards more deliberate and strategic planning. This year’s report captures that evolution, with trade tensions, financing pressures and regulatory scrutiny all influencing how deals are structured and executed.”

“The survey respondents included 100 executives from multinational corporations as well as 50 from large private equity firms and 50 from major investment banks, all of whom have participated in M&A across multiple regions and sectors over the past two years. Results were analyzed by Mergermarket and responses were anonymized and presented in the aggregate.”