Mergers & Acquisitions: The 2025 Rebound and Morgan Stanley's Strategic Approach

As we step into 2025, the mergers and acquisitions (M&A) landscape is poised for a robust rebound, driven by a more favorable regulatory environment and increased financial sponsor activity. Morgan Stanley, a global leader in financial services, is well-positioned to capitalize on this trend, leveraging its strategic approach to investing and M&A advisory services.



The M&A market in 2024 saw a muted rebound after hitting a low point in 2023, with deal volume lower than expected. However, the stage is set for a more significant rebound in 2025, as financial sponsors, including private equity firms, are expected to increase their activity, particularly on the sell side. With an ever-increasing inventory of aging private-equity owned assets that need to be monetized, and pressure building to return capital to investors, financial sponsors will need to sell assets and return money to stakeholders as a first step before raising new funds.



Morgan Stanley, with its extensive M&A advisory experience and global reach, is well-equipped to facilitate these transactions. The firm's co-global head of M&A, Tom Miles, expects increased activity from financial sponsors selling companies and a more favorable antitrust environment to be the key drivers of the 2025 M&A rebound. Miles notes that the average age of sponsor portfolios is historically high, and monetizations have to happen to allow for new fundraising. Additionally, a new U.S. presidential administration is expected to usher in relaxed antitrust and merger guidelines, facilitating deals and making it more attractive for financial sponsors to sell their portfolio companies.



Beyond financial sponsor activity, companies are also expected to deploy their capital through strategic acquisitions and cross-border transactions. As economies have grown at different paces, resulting in attractive valuations and appetite for diversification, there is interest across global regions in cross-border transactions. Morgan Stanley, with its diverse client base and global footprint, can help facilitate these strategic deals, connecting companies with attractive acquisition targets and providing expert M&A advisory services.

In conclusion, the 2025 M&A rebound presents an exciting opportunity for Morgan Stanley and its clients. With a strategic approach to investing and M&A advisory services, the firm is well-positioned to capitalize on the increased financial sponsor activity and strategic deals expected in the coming year. By leveraging its global reach, extensive experience, and commitment to client success, Morgan Stanley will continue to be a driving force in the M&A market.