As summer 2025 approaches, the M&A landscape is being reshaped by three powerful forces: geopolitical instability, economic volatility, and the acceleration of AI adoption. Geopolitically, trade policy unpredictability—especially tariffs, shifting alliances, and regulatory scrutiny—is slowing down global deal execution. Yet, amid the uncertainty, AI is emerging as a critical enabler, fundamentally changing how deals are sourced, structured, and closed.
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Trade Policy Now Dictates Deal Flow, Geopolitically
New deal kickoffs, especially asset sales and mergers, are up 4% globally in the first four months of this year compared to the same time a year ago. Since these are deals at inception before they are announced, it can provide a good sense of what’s to come and some of the momentum that has already occurred
Yet cross-border M&A is increasingly constrained by geopolitical friction. New US tariffs, for instance, have triggered a pullback in deal completions. Deal completion rates on Datasite, which annually facilitates about 19,000 new deals, dropped to 44% following the first major tariff move this April, compared to 49% YoY. Buyers are hitting pause, not for lack of capital or opportunity, but because the risk calculus has changed.
Tariffs disrupt supply chains and distort valuations, injecting uncertainty into financial models. Revenue forecasts become unstable. Acquiring companies with global exposure now requires detailed scenario planning around trade dynamics. Regulatory hurdles, particularly in US-China relations, further complicate timelines and increase costs. The result: longer diligence cycles, restructured terms, and more cautious capital deployment.
AI Is Transforming Diligence and Targeting
In response, dealmakers are leaning into AI to speed up diligence, enhance accuracy, and manage risk. AI platforms can analyze thousands of documents in minutes, extract key clauses, flag liabilities, and ensure compliance, streamlining what was once a manual, error-prone process. Datasite has seen a surge in the use of AI-driven Q&A tools, indicating a heightened demand for clean, transparent data before any deal moves forward.
Beyond diligence, AI is revolutionizing deal origination. By ingesting data across sectors, markets, and geographies, AI systems identify high-fit acquisition targets faster and more precisely. This is particularly valuable for strategics, and PE firms looking to outpace competition and align acquisitions with long-term growth themes.
Generative AI is also reshaping valuation methodologies. From historical trend analysis to real-time market signals, AI augments traditional models with data-rich insights. It automates critical but time-consuming tasks like redaction and categorization, freeing up deal teams to focus on strategic calls.
Proactive Readiness Is the New Edge
Success in today’s environment hinges on readiness, not timing. In an era where regulators can pivot mid-process and tariffs can disrupt a deal overnight, agility is essential.
To thrive in this dynamic landscape, companies need to react not only to changes as they happen, but anticipate potential challenges and prepare for them in advance. By rationalizing financials, companies can ensure that their financial statements are clear, accurate, and ready for scrutiny at any time. Auditing IP portfolios helps in identifying and protecting valuable intellectual property, which can be a critical asset during mergers and acquisitions.
Mapping supply chain exposure is another crucial step. Understanding the vulnerabilities and dependencies geopolitically within the supply chain allows companies to develop contingency plans and mitigate risks. Aligning leadership on integration strategies ensures that everyone is on the same page and ready to execute the plan seamlessly when the time comes.
Pivoting in response to regulatory changes, market shifts, and other unforeseen events requires a combination of machine precision and executive judgment. AI can help surface options and provide data-driven insights, but human insight is essential for making the final decisions and executing the strategies effectively
Bottom Line: Speed, Insight, and Strategic Discipline
M&A in 2025 is not about finding perfect conditions, it’s about operating decisively amid ambiguity. AI is no longer optional. It’s table stakes. And in a world where global tensions, economic pressure, and regulatory flux are the norm, the winners will be those who can move fast, stay informed, and act with conviction.
The integration of AI into M&A processes offers unprecedented opportunities for efficiency and strategic alignment. Automation and data analytics allow for quicker, more accurate evaluations, freeing up human resources to focus on complex decision-making and strategic planning. As AI continues to evolve, its role in predicting market trends and assessing potential acquisition targets will only grow stronger.
Additionally, AI’s ability to handle vast amounts of data ensures that due diligence is thorough and compliant, reducing the risk of oversight and enhancing the quality of information available to decision-makers. This technological edge enables companies to react swiftly to regulatory changes, economic shifts, and unforeseen challenges, ensuring they remain competitive and resilient.
For tech leaders, strategics, and Fortune 100 executives, the message is clear: rethink your M&A strategy, modernize your toolkit, and stay proactive. Embracing AI is not just about staying current; it’s about gaining a competitive advantage in a rapidly changing landscape, geopolitically. The future of dealmaking has already arrived, and those who adapt will lead the way.
