Embracing disruption: Strategic M&A in a shifting global landscape

In a world shaped by geopolitical uncertainty, volatile financial markets, and the relentless pace of technological and policy change, one thing is clear: disruption is no longer a threat—it’s an opportunity.

At Shoosmiths, we’re increasingly seeing our clients lean into this uncertainty, using M&A as a strategic lever to future-proof their businesses, unlock new markets and deliver new growth.

A market in motion

Despite headwinds such as US tariffs, rising interest rates, and fluctuating capital markets, strategic M&A activity is on the rise notwithstanding an overall reduction in M&A volumes. According to Dealogic, strategic dealmaking increased by 11% year-on-year in the 12 months to May 2025 (source: First 9 Months M&A Highlights), with notable surges in the technology, financial services, and media sectors. This aligns with what we’re seeing on the ground: a recalibration of priorities, with the market doubling down its focus on quality, resilience and long-term value creation.

What’s driving the deals?

Across our M&A practice, we’re observing several key trends shaping the deal landscape:

1. Quality over quantity

High-quality assets are commanding premium valuations. Competitive auction processes are becoming the norm for businesses with strong management teams, proven track records, and scalable growth models. In this environment, fundamentals matter more than ever.

2. AI as a deal enabler and deal driver

AI is no longer just a sector—it’s a tool changing how deals get done. Dealmakers are increasingly using AI to streamline financial modelling, identify acquisition targets, and map operational synergies. This is accelerating timelines and sharpening decision-making. AI is also, in itself, a very hot sector as companies look to accelerate the adoption and acquisition of greater AI capability via M&A.

3. Integration starts early

Gone are the days of post-deal integration as an afterthought. Today’s canny acquirers are building integration and value creation plans into the deal process from day one. This proactive approach reduces execution risk and ensures value is realised from the moment the ink dries.

4. Creativity triumphs

There is a definite shift to strategic partnerships and collaborations including JVs and non-traditional structures which seek to bridge valuation gaps between the parties. Deferred consideration mechanisms, earn-outs, and alternative deal structures are being used more frequently to align buyer and seller expectations—particularly in sectors where future performance is difficult to predict.

5. Agility is the new advantage

The most successful dealmakers are those who can pivot quickly. Whether it’s responding to regulatory shifts, macroeconomic shocks, or emerging technologies, agility and resilience are becoming defining traits of high-performing M&A teams.

As we move into the second half of 2025, we expect the pace of strategic M&A to remain strong—particularly in sectors aligned with innovation and regulation. For those in the M&A market, the message is clear: disruption favours the bold. Those who embrace uncertainty, invest in quality, and plan for integration from the outset will be best positioned to thrive.

In 2024, Shoosmiths' corporate practice had its busiest year, completing over £10.4bn in transactions across 370 deals. Over the past three years, average deal sizes increased by over 200% in M&A, 100% in PE, and 280% in VC, highlighting the firm's high-quality work and solidifying its position as a leading mid-market specialist.