Worldwide M&A activity for the first half of 2025 surged with overall deals totaling $1.98 trillion, up 33% from this timeframe last year. This marks the strongest opening period for deal making since 2022 and was the first time quarterly deal value surpassed $1 trillion since Q2 2022.
However, M&A volume continued to slide, with just over 24,000 deals announced globally for H1 2025, a 10% drop year-over-year and the lowest deal count for any half-year period in the last five years.
US deal share drops to three-year low
US-targeted M&A reached $857.5 billion in H1 2025, a 13% increase from the first half of 2024, marking the strongest start to a year for US deal making in three years. Still, the US accounted for just 43% of global M&A by value, its lowest share since H1 2022, and down 8% from a year ago. The reduced share of US activity may reflect a combination of factors like sustained high interest rates and stock market volatility, persistent regulatory scrutiny, and a more cautious approach from PE buyers holding out for more favorable conditions.
Meanwhile, Asia Pacific M&A soared 82% year-over-year to reach $408.8 billion, the region’s strongest period in three years. A resurgence in strategic and sponsor-led deals, particularly in sectors like technology and industrials, has helped revive confidence in the region. European M&A, by contrast, declined 4% to $340.6 billion, hitting a two-year low. Uncertainty around inflation, slower growth, and more fragmented deal regulations likely weighed on sentiment.
Cross-border M&A climbed 26% to $595.2 billion, marking the strongest first-half for cross-border M&A in three years. The technology, energy & power, and industrials sectors accounted for 50% of cross-border deals, up from 39% in H1 2024.
Mega deals reach record levels
Mega deals valued over $10 billion continued to dominate the global M&A landscape. 32 such deals were announced in the first two quarters, totaling $606.9 billion, up 78% from the same period last year. This was the strongest first half for mega deals by count since records began in 1980.
At the other end of the market, deals valued under $500 million totaled $385.4 billion, flat by value and down 11% by volume compared to 2024 levels.
Technology, financials and energy lead global sector activity
Technology remained the leading sector for M&A activity for the first half of this year, with a $347.4 billion valuation, up 28% from last year and accounting for 18% of overall global deal value. Appetite for AI capabilities, cloud infrastructure, and digital platforms continues to drive demand. The financials sector followed closely, rising 49% year-over-year to comprise 17% of overall activity. Energy and power deals also climbed, reaching $310.6 billion, up 19% compared to last year.
PE-backed activity strengthens, led by large-cap deals
PE backed deals totaled $413.3 billion, up 24% from H1 2024. Buyouts accounted for 21% of global M&A activity (slightly down from 22% a year ago), marking the third-largest first-half period for PE deal making since 1980.
Latham & Watkins tops legal leadership
For global principal advisors, Latham & Watkins claimed the top spot, advising on 372 announced deals valued at $257.3 billion and 13% market share. Wachtell Lipton Rosen & Katz followed with 10.4% market share on 55 deals valuing $204.9 billion. Ranking third, Kirkland & Ellis was principal adviser on 316 deals valuing $203.9 billion at 10.3% market share.
In terms of firms that advised any party on a transaction, Latham & Watkins moved up to first in the rankings, advising on 380 deals valued at $277.5 billion with a 14.1% market share. Next up, Sullivan & Cromwell had a 11.6% market share with 92 deals totaling $229.5 billion. In third, Wachtell Lipton Rosen & Katz advised on 55 deals valuing $204.9 billion with 10.4% market share.
