New Hot Topics in M&A: What to Expect in 2025?

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Vlad Zghurskyi

17.02.2025

5 Min Read

With 2025 already here, pinpointing the most lucrative M&A targets is paramount. Several sectors have emerged as particularly promising and are expected to remain dynamic throughout the year.

The healthcare, technology, and renewable energy sectors have become hotbeds of M&A activity. These industries are experiencing rapid innovation, increasing demand, and significant regulatory changes. As a result, companies are seeking strategic partnerships and acquisitions to bolster their market positions, accelerate growth, and capitalize on emerging opportunities.

Why are these such hot areas, and what can we expect moving forward? Keep reading to learn more.

Healthcare M&A: Trends, Drivers, and Challenges

The significant number of healthcare transactions that closed in early 2024 reflects a growing trend. As interest rates remain steady and the broader economy stabilizes, this upward trajectory is expected to persist.

According to PwC’s Annual Global CEO Survey, over half of healthcare CEOs intend to make at least one acquisition in the next three years. With pharma companies holding substantial cash reserves, M&A deal activity is anticipated to intensify.

The key factors are driving this surge in dealmaking: the transformative impact of AI on the pharmaceutical industry, and the acquisition of niche medtech companies to expand capabilities and diversify portfolios.

What else is on the table?

Pharma companies will seek to fill pipeline gaps by investing in biotech companies. In this high-interest-rate environment, well-prepared sellers with strong data will attract the most attention from buyers.

Private equity firms will continue to target fragmented sectors like private clinics, specialist care, dental, veterinary, and services groups.

Companies will actively seek to digitize through analytics, direct-to-consumer therapeutics, smart devices, and other software solutions. Acquisitions and partnerships with tech companies will be key strategies.

Document trend for the search “M&A” in the healthcare sector:

Source: Alpha Sense

Geopolitical risks are the top concern for healthcare investors, surpassing funding and pricing cuts. North America remains the dominant market for dealmaking.

Geopolitical tensions have emerged as the most significant risk for healthcare investors, with 40% of respondents identifying it as the greatest challenge, a substantial increase from 26% last year. Funding and pricing cuts remain a persistent concern, ranking as the second-largest issue for the sector, cited by 36% of respondents.

Despite these challenges, North America continues to be the most promising market for dealmaking, with 74% of respondents viewing it as the biggest opportunity.

Energy Sector: How M&A is Shaping the Clean Energy Transition

As energy companies strive to achieve carbon neutrality, M&A has become a strategic tool to enhance their competitive advantage and position themselves as industry leaders in the clean energy transition.

The renewable energy sector experienced significant M&A activity in Q3 2024, with 312 deals totalling $19.5 billion. The industry’s largest disclosed deal was Vistra’s $3.2 billion minority acquisition of Vistra Vision.

GlobalData's Power Industry Mergers and Acquisitions Deals report for Q3 2024 provides insights into the key trends and disruptive themes shaping the power market M&A landscape:

The mining and metals sector is expected to witness continued consolidation and deals aimed at securing critical mineral supplies;
In the oil and gas sector, mega-deals will remain a key driver of corporate consolidation as companies seek to diversify their asset portfolios and achieve synergies;
The renewables sector will see developers monetize assets to address higher financing rates and construction costs, while publicly listed utilities will recycle non-core assets to fund their development pipelines.

Here are some of the most notable deals in this area:

Source: Deloitte

Document trend for the search “M&A” in the energy sector:

Source: Alpha Sense

This is how the deal value inside the specific segments of the energy area changed over the last few years:

Source: PWC

Tech M&A Analysis

One of the most obvious and expected trends is the Tech M&A. A significant motivation behind M&A activity is the acquisition of technological capabilities. Over 60% of deals are driven by the need to enhance digital capabilities, particularly in AI, machine learning, and cloud infrastructure. The integration of AI technologies is particularly prominent, with about 35% of tech M&A focusing on firms specializing in AI and automation.

Private equity firms are becoming increasingly active in the tech M&A space, expected to account for nearly 40% of all tech-related deals in 2024, up from 30% in 2023. This trend is fueled by substantial amounts of uninvested capital seeking high-growth opportunities.

The tech industry is leading the way in the global M&A resurgence, racking up $640 billion in deals. No other sector comes close — tech made up 18% of potential deals in 2024 and saw a 29% jump in Q3 deal value compared to last year.

This growth isn’t slowing down anytime soon. Investors are still highly interested in AI and machine learning, making them prime targets for acquisitions in the next year. Interestingly, cybersecurity has now overtaken AI as the hottest focus area in tech M&A at the beginning of 2025.

Conclusion

Market intelligence reports also corroborate this optimistic outlook, citing factors such as lower interest rates and higher stock valuations as key catalysts. These favourable conditions will facilitate convergence between buyer offers and seller expectations.

For strategic buyers, growth and competitive pressures remain paramount. While some tech giants have prioritized efficiency and cost-cutting measures, the pursuit of growth remains essential to maintain investor confidence. Companies seeking to achieve double-digit growth may increasingly turn to M&A as a strategic solution.

M&A trends

global M&A

tech M&A

energy M&A

healtcare M&A

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