M&A: Adapt or Perish

2024 was an unpredictable year. There were more mergers and acquisitions than in 2023, but they faced multiple hurdles: stricter regulations, changing interest rates and a market which moved cautiously. Now, in 2025, the landscape has changed. Restrictions are beginning to ease, and buyers are back in action. Companies which continue to operate under the same criteria as five years ago run the risk of being left behind.

Companies which are successful in this new environment are those which anticipate market trends, detect opportunities and evolve without fear. It´s not enough to react: You have to be able to anticipate. Strategic agility has become a determinant of success in M&A. Companies which know how to adapt are the ones leading the game.

Technology and artificial intelligence

Depending on intuition alone, or on extensive analyses, is no longer viable. Companies which have incorporated AI into opportunity identification, due diligence and integration processes are obtaining a competitive advantage which is difficult to match.

This, however, does not mean that AI is taking control. Experience and sound judgement are still essential. What has changed is the speed and precision with which informed decisions can be taken. Advanced tools allow the processing of large volumes of data, the identification of patterns, and the anticipation of risks.

Highly active strategic sectors

M&A activity has focused on sectors with a great potential for transformation. Energy and natural resources lead the most relevant transactions, with moves which are redefining the market. In technology, although valuations have been more conservative, dynamism remans intact thanks to the sector´s capacity for innovation. In healthcare, strategic acquisitions have continued to grow, while retail has seen renewed interest in deals focused on expansion and diversification. 

Nevertheless, it´s not just about which sectors are dynamic, but about how the deals are being structured. Traditional buy-all models are being replaced by more flexible approaches: joint ventures, partial acquisitions and structures which minimise risks without limiting growth. In a context where finance is more costly and caution continues to dominate, designing efficient agreements is a priority.

Long-term thinking

One of the most expensive mistakes in M&A is focusing exclusively on signing the agreement, neglecting post-transaction integration. A badly executed acquisition can wipe out more value than it generates. The difference between a successful transaction and a failed one lies in the capacity for integration, for building real synergies and ensuring a smooth transition.

Companies leading in this area don´t only consider the immediate impact, but how the acquisition will strengthen their position in the next five or ten years. Well executed mergers and acquisitions do not only boost growth, but also consolidate a leading position in the market.

Corporate sustainability

The M&A market has become an essential tool for corporate sustainability. The capacity for adaptation, technology integration and efficient risk management will define success in the coming years.

What we are witnessing are structural transformations. I honestly think that now, more than ever, vision and strategy are crucial in decision making. This is a cornerstone of our work at Confianz, our business advisory firm, which has been advising companies on M&A processes for years, ensuring solid, well-structured deals which align with business objectives.