What's Happening?
The M&A market has faced several shocks over the past five years, including the COVID-19 pandemic, rising interest rates, and US tariffs. Despite these challenges, some companies are strategically using disruptions to their advantage, maintaining a long-term view on M&A. Strategic M&A has grown 11% year over year through May 2025, with technology and financial services sectors rebounding. Companies are leveraging M&A to adapt to changes and enhance their competitive positioning.
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Why It's Important?
M&A activities are crucial for companies navigating economic uncertainties and seeking growth opportunities. They allow businesses to acquire new capabilities, expand market reach, and achieve scale efficiencies. However, M&A also involves risks such as regulatory hurdles, integration challenges, and financial market volatility. Companies that successfully leverage M&A can enhance their strategic positioning and shareholder value, while those that fail may face financial losses and strategic setbacks.
