Global mergers and acquisitions have plummeted to their lowest level in two decades, surpassing even the worst downturns of the 2008 financial crisis and the COVID-19 pandemic. The latest data reveals a dramatic slowdown in deal-making, with executives and investment bankers pulling back amid economic uncertainty and escalating trade tensions.
The numbers are staggering. In April 2025, global M&A activity fell to levels not seen since February 2005, marking a sharper decline than during previous economic crises. The total value of deals dropped to $243 billion, a 54 percent decrease from the previous month and 20 percent below the historical monthly average. The United States, the world’s largest M&A market, recorded only 555 deals, the lowest monthly total since May 2009.
The trade war is taking its toll. President Trump’s announcement of sweeping tariffs on April 2 sent shockwaves through financial markets, forcing companies to reconsider acquisitions. Major firms, including Chime and StubHub, have shelved planned IPOs, while cross-border transactions have stalled due to heightened regulatory scrutiny.
The impact varies across industries. Sectors with limited exposure to international trade, such as telecom, utilities, and energy, have remained relatively stable. However, manufacturers and companies reliant on global supply chains have been hit hard, leading to a more cautious approach to acquisitions.
Technology remains a rare bright spot. Despite the downturn, tech-related deals continue to dominate, accounting for nearly 40 percent of the $600 billion in U.S. M&A transactions recorded so far this year. Companies focused on software and intellectual property have maintained momentum, even as traditional industries struggle.
The uncertainty surrounding tariffs and economic policy has left businesses hesitant to commit to large-scale mergers. Analysts warn that unless market conditions stabilize, deal-making could remain sluggish for the foreseeable future.
Sources:
https://the-cfo.io/2025/04/11/ma-activity-slows-as-tariffs-and-uncertainty-weigh-on-deals/