The M&A market is steadily gaining strength as sponsor activity rebounds, regulatory and monetary dynamics normalize, and corporates continue demonstrating their intention to simplify portfolios."

1. Newfound macro clarity will spur the next substantial wave in corporate dealmaking

With key M&A bottlenecks of monetary policy and regulatory uncertainty
addressed—at least directionally—CEO confidence is rising amid broader expectations that the new US administration will usher in more supportive regulatory policies, fueling corporate M&A.

2. Simplification is becoming more sophisticated, more valuable, and more global

More than half of global separation announcements in 2024 occurred outside the United States. Driven by a mixture of portfolio complexity and optimal capital allocation, corporate separation activity remains strong across the globe, with few signs of slowing.
Facing a push to deploy, sponsors acknowledge it’s time to unwind

Sponsors are tapping into a range of strategic levers to unlock liquidity—sponsor-to-sponsor deals, minority stake sales, and creative continuation fund structures—driven by high levels of dry powder primed for deployment and continued focus on returning capital to investors.

The AI opportunity is here—and M&A will materialize as the stack develops

We view the AI era through an Infrastructure-Platform-Application framework, with most M&A activity to date concentrated at the Infrastructure and Platform layers. The anticipated wave of industry transformation is already sparking M&A among technology companies.