Sector-Specific Dynamics Continue to Shape M&A
In the Automotive, Transportation & Mobility sector, deal activity is expected to grow, driven by the need to strengthen supply chain resiliency and address labor challenges. The Energy & Natural Resources sector anticipates a strong year, with dealmaking concentrated in oil, gas, and electric utilities—though interest in renewables, while still present, has softened compared to 2024. In Healthcare, private equity involvement and investments in technology, automation, and AI are fueling optimism and expected consolidation. Across all sectors, respondents remain mindful of economic uncertainty, prompting strategic shifts in M&A approach. PE professionals report confidence in their due diligence processes, though valuation gaps continue to pose execution challenges. Over half are increasing their focus on market analysis and deal strategy. Meanwhile, AI continues to gain traction—not only as a tool for enhancing deal efficiency, but also as a driver of acquisition targets, particularly in software, data infrastructure, and cybersecurity.
Respondents from key sectors of interest to Dykema broadly expect M&A markets to strengthen in the near future
Automotive, Transportation, and Mobility
Growth in automotive M&A activity is expected to be fueled by the need to increase supply chain resiliency and labor shortages / other labor challenges
- Respondents are mindful of the economy, with M&A strategy shifting as a result of economic uncertainty in 2025
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“Sector-specific forces are increasingly driving the structure and pace of M&A, and nowhere is that more evident than in AI. Legal teams are seeing heightened scrutiny around IP ownership, data governance, and ethical deployment. These issues aren’t just technical—they’re strategic, and they’re reshaping how deals are negotiated, diligenced, and closed.”Frank D. Ballantine |
