In Davos, Switzerland, on January 22, a survey conducted by EY-Parthenon revealed that global chief executives are anticipating a significant rise in corporate deal-making in 2025, particularly in mergers and acquisitions following the re-election of U.S. President Donald Trump for a second term in November.
The survey indicated that 56% of CEOs plan to actively engage in M&A activities in 2025, up from 37% in September. The report also highlighted that 60% of global CEOs anticipate an increase in transactions exceeding $10 billion, marking the highest deal appetite in almost two years.
The findings imply a potential rebound in M&A activity post a dip in 2023, fueled by favorable U.S. borrowing costs and expectations of business-friendly policies under Trump's leadership. Bankers project global transactions to exceed $4 trillion this year.
Moreover, CEO confidence in growth rose to 73.5% after the November 5 election, up from 70.5% in September, signaling a positive outlook for the global economy.
Jad Shimaly, EY's global managing partner for client service, expressed optimism among many clients at the World Economic Forum in Davos, Switzerland, noting, "They expect steady growth, which encourages long-term strategic investments, driving momentum in the global economy."
The survey highlighted that 48% of CEOs were planning divestments or carve-outs, while 96% intended to pursue various transactions such as initial public offerings, joint ventures, or strategic alliances. Notably, real estate, technology, and consumer products are expected to be the most active sectors for M&A activity.
Key countries projected to attract investments in 2025 include Canada, the U.S., Mexico, the United Kingdom, and Germany, based on the survey findings.