M&A deals expected to increase in second half of 2025, WTW survey finds

By Edward Carron

June 24 - (The Insurer) - More than half (54%) of 82 companies surveyed by WTW anticipate an increase in M&A activity in 2025, despite a slow start to the year which has seen deal volume down 9% from the first half of 2024.

The survey, which aimed to examine M&A from the perspective of HR, spoke to senior professionals in the sector from companies across the world.

Around two thirds (67%) of firms surveyed were located in North America with the rests situated in Europe, Middle East and Asia Pacific.

HR due diligence, crucial for assessing workforce-related risks and synergies, was highlighted as a challenge within deals Due Diligence faces hurdles such as data completeness, quality, and integrity, was cited as top challenges by 66% of respondents.

The survey also indicated that identifying key non-executive talent is a priority, with 78% of respondents focusing on this aspect during due diligence.

Retention of non-executive talent emerged as a leading metric for integration success, rated higher than leadership retention.

Cultural alignment remains a top challenge, particularly for non-US companies, with 74% of non-US and 54% of US companies citing it as a major concern.

65% of those surveyed believe that the impact of Generative AI on M&A deal making processes is anticipated within two years, though adoption remains cautious.

Virtual data rooms (VDRs) facilitate digital data sharing, but fundamental data integrity issues persist, potentially overwhelming buyers during HR due diligence, WTW said.

“Low deal volumes during the first half of 2025 suggest pent-up demand”, said Jim Plomer, senior director, integrated global solutions – M&A for WTW.