What M&A’s $4.8 trillion comeback means for CFOs

Core Insights - Global M&A activity is projected to reach $4.8 trillion in 2025, marking the second-highest total on record, indicating a revitalized market with clearer pricing signals and new growth strategies for companies [2] Group 1: Deal Activity and Trends - The recovery in 2025 was primarily driven by larger transactions, with megadeals over $5 billion comprising a significant portion of the activity, often initiated by companies that are not regular acquirers [3] - Scope-driven deals are on the rise, with nearly 60% of large transactions aimed at acquiring new capabilities, entering adjacent markets, or expanding business models, necessitating strong integration plans [5] - Valuations have increased, with multiples rising to 11.6 times EBITDA, reflecting greater confidence among buyers and sellers, which may lead to more aggressive deal pursuits [6] Group 2: Role of Technology and AI - AI has become a crucial factor in M&A transactions, with nearly half of strategic technology deal value involving AI-native businesses, highlighting its importance in growth strategies [7] - The influence of AI extends to buy-side decisions, where 20% of strategic acquirers adjusted their willingness to proceed based on AI's potential impact on target operations or financial outlooks, indicating that AI analysis is now a standard part of the CFO toolkit [8]