21st Annual Mergers & Acquisitions Outlook Survey
Executive Summary
Now in its 21st year, Dykema’s Annual M&A Outlook Survey captures the perspectives of 216 dealmakers across the U.S., including executives, bankers, attorneys, and private equity professionals. The 2025 findings reflect cautious optimism in the face of economic uncertainty, with respondents anticipating increased deal activity—particularly in the small- and mid-market segments.
Private equity investors are expected to be a major catalyst for deal volume, while due diligence continues to grow in importance. ESG screening is gaining traction, and representation & warranties insurance usage is projected to rise, particularly in energy-related deals.
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“We’re seeing a clear shift toward deeper diligence and strategic selectivity—especially in sectors facing regulatory or valuation pressure.”J. Michael Bernard |
Artificial intelligence is emerging as a transformative force in M&A. Nearly half of respondents expect AI to positively impact risk analysis, valuation, and target screening. Sectors like Technology, Healthcare, and Energy are expected to lead M&A activity, with AI infrastructure—such as software, data storage, and security—becoming prime acquisition targets.
“AI is no longer a future consideration—it’s a present-day tool reshaping how deals are sourced and evaluated.”Jeanne M. Whalen |
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Strategic shifts are evident across industries. Clients are navigating tariffs, interest rate volatility, and geopolitical uncertainty by focusing on resilient, high-cash-flow targets. In Healthcare, PE involvement and tech investment are driving consolidation, while Energy respondents anticipate growth in oil, gas, and utilities. Despite challenges, the survey reveals a resilient and adaptive M&A landscape.
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“The interest rate environment has been a key factor in limiting M&A.”Stephen D. Sayre |
Key Findings
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Up from last year, seventy-four percent of respondents said that the U.S. M&A market will strengthen in the next 12 months.
There’s still plenty of economic uncertainty out there, with respondents citing general economic conditions (42%) and financial market conditions (32%) as the top two factors posing obstacles to deal activity in the next year. Tariffs emerged as a significantly greater concern in 2025, with (30%) of respondents identifying them as a key obstacle to dealmaking—up sharply from just 8% in 2024.
In response to macroeconomic conditions, respondents report shifting their M&A strategy to focus on strategic acquisitions and mitigate economic uncertainty and impact of tariffs.
Eighty-three percent of respondents believe PE investors will boost deal volume in the coming year, and 76% expect due diligence to remain a top priority. However, the tendency for PE firms to hold investments longer is having mixed implications for dealmaking.
A majority of respondents expect to work on deals involving ESG risk screening in the next year, highlighting its growing role in M&A strategy. Meanwhile, 62% anticipate increased use of R&W insurance, though most expect only a modest rise. Just 4% foresee any decrease in usage.
In Automotive, Transportation & Mobility, deals are driven by supply chain and labor challenges. Energy & Natural Resources anticipates strong activity in oil, gas, and utilities, though interest in renewables has softened. Healthcare remains active, fueled by private equity and investments in tech and AI. Economic uncertainty is prompting more strategic dealmaking. PE professionals are confident in due diligence but continue to face valuation gaps. AI is gaining traction both as a tool for deal efficiency and as a driver of acquisitions, especially in software, data infrastructure, and cybersecurity.
