‘Vortex of Volatility’ Kept 2025 Dealmaking From Breaking Records

Group 1 - The global mergers and acquisitions (M&A) market reached $4.8 trillion in 2025, marking the second-highest total on record, driven primarily by North America with $2.6 trillion in deal volume, a 52% increase from 2024 [2] - Megadeals, defined as transactions over $5 billion, dominated the M&A landscape with a record 70 such deals, including Union Pacific's $88 billion acquisition of Norfolk Southern and a consortium led by the Saudi Public Investment Fund taking Electronic Arts private for $56.6 billion [2] - Despite the strong M&A figures, political volatility and regulatory challenges, such as the US government shutdown, created obstacles that affected market activity, particularly in the mid-market segment [3] Group 2 - The IPO market in 2025 raised $170.6 billion from over 1,300 IPOs, the best performance since 2022, with the Americas seeing listing volumes nearly double from $42.4 billion in 2024 to $77.9 billion [3] - However, the last quarter of 2025 experienced a decline in global equity capital market deal volumes due to the US government shutdown, which significantly impacted transaction activity in the Americas [3] - Analysts noted that the momentum built in the US IPO market through September was interrupted by the shutdown, turning what could have been a spectacular quarter into a merely good one [3]