Detroit-based Dykema has released its 2025 M&A Outlook Survey, which shows cautious optimism as dealmakers prepare to navigate economic uncertainty, tariffs, and valuation gaps.
A large law firm in Detroit, Dykema’s 2025 survey included responses from 216 executives, bankers, private equity leaders, and advisors.
According to the survey, 74 percent of respondents expect the U.S. M&A market to strengthen over the next 12 months, with strategic acquisitions and mitigating economic uncertainty emerging as top priorities.
Private equity continues to be a driving force, with 83 percent of respondents anticipating private equity activity will boost deal volume. Increasingly, dealmakers are emphasizing due diligence, ESG risk screening, and the use of representation and warranties insurance, particularly in complex or high-value transactions.
“The market isn’t retreating — it’s recalibrating,” says Steve Sayre, co-leader of Dykema’s M&A practice. “Dealmakers are finding opportunity through precision, innovation, and strategic alignment.”
Sector-specific trends reveal a reshaped landscape. Technology, media, and telecom lead anticipated deal activity, with AI-enabled businesses attracting particular interest.
Health care M&A is expected to be strategic and private equity-backed, focusing on tech-driven services, efficiency, and specialty care platforms. In the energy sector, dealmakers are emphasizing portfolio optimization, infrastructure modernization, and selective renewable investments.
While the cannabis sector remains cautious, selective acquisitions are occurring among operationally sound companies. Dental service organizations and veterinary service organizations are navigating a measured, disciplined market.
Meanwhile, the automotive, industrial, and manufacturing sector is prioritizing operational efficiency, supply chain resiliency, and tech-enabled transformation.
“Automotive dealmakers aren’t chasing scale, they’re engineering precision,” says Joe DeHondt, a member at Dykema. “The focus has shifted to strategic add-ons, domestic consolidation, and platforms that can weather economic uncertainty while positioning for long-term transformation.”
Other notable findings include:
- 69 percent of respondents anticipate acquisitions in the coming year, up from 61 percent in 2024, while joint ventures (52 percent) and sales (50 percent) also reflect increased activity.
- Tariffs, economic conditions, and valuation gaps are expected to be top obstacles to dealmaking.
- Representation and warranties insurance is projected to rise in frequency, particularly in high-complexity transactions.
For more than two decades, Dykema’s Annual M&A Outlook Survey has tracked the pulse of U.S. dealmaking.
The full report is available here.
Dykema, which serves business entities nationally on a wide range of complex legal issues, has lawyers and other professionals in 13 U.S. offices work in close partnership with clients from startups to Fortune 100 companies.
For more information, visit dykema.com.
