In 2024, merger and acquisition (M&A) activity tended to stabilize under the influence of economic uncertainties. A cautious approach prevailed due to high interest rates, inflationary pressures, and geopolitical uncertainties. However, improvements in economic indicators and the expectation of falling interest rates in the second half of the year paved the way for an increase in transaction volumes.

M&A Trends in 2024

1. Increase in Small-Scale Transactions

   In 2024, transactions under $1 billion accounted for 95% of total M&A activity. Small and medium-sized transactions in the technology and energy sectors were prominent.

   
   

2. Scaling Strategies

   Mergers aimed at scaling up came to the forefront in the energy, natural resources, retail, and telecommunications sectors. Cost synergies and value creation goals supported this strategy.

   
   

3. Technology and Artificial Intelligence Investments

   Companies seeking a competitive advantage in digital transformation and artificial intelligence acquired technology firms. Artificial intelligence, cybersecurity, and cloud services were particularly prominent.

   
   

4. Sustainability-Focused Transactions

   Companies seeking compliance with environmental, social, and governance (ESG) criteria have added sustainability-focused firms to their portfolios. The energy transition has formed the basis of this trend.

   
   

M&A Expectations and Roadmap for 2025

1. Increased Transaction Volume

   Improvements in economic indicators and expectations of falling interest rates are projected to increase M&A activity by 10% in 2025. Private equity funds (PE) are expected to be 16% more active.

   
   

2. Revival in the Technology Sector

   Rapid advancements in artificial intelligence, cloud services, and cybersecurity will boost M&A activity in the technology sector.

   
   

3. Consolidation in the Healthcare Sector

   With increasing investments in telemedicine and remote patient monitoring technologies, merger and acquisition activity in the healthcare sector is expected to accelerate.

   
   

4. Transformation in the Energy Sector

   Increased interest in renewable energy projects will accelerate M&A activity in the energy sector. Compliance with ESG criteria will support this process.

   
   

5. Impact of the Regulatory Environment

   In the US, with Donald Trump's return to the presidency, flexibility in antitrust controls and a decrease in corporate tax rates may support M&A activities.

   
   

2025 M&A Expectations in Turkey, GCC Countries, and the US

2025 M&A Trends in Turkey

Investor Appetite: Domestic and foreign investors will focus on the energy, healthcare, and technology sectors.
Renewable Energy and Fintech: Renewable energy projects and digital payment systems will be attractive to investors.

GCC Countries: Growth and Transformation

Saudi Arabia: Sustainable energy and mega-projects will accelerate within the framework of Vision 2030.
UAE: Artificial intelligence, fintech, and green energy projects will come to the forefront.

M&A Trends in the US

Technology and Healthcare: Artificial intelligence, cybersecurity, and digital health solutions will offer significant investment opportunities.
Foreign Investments: Interest from investors from Asia and Europe will increase. Global Perspective and Roadmap for 2025
Strategic Partnerships: Partnerships in the energy, technology, and healthcare sectors will increase in Turkey and GCC countries.
Digital Transformation: Artificial intelligence and cloud services will drive the M&A market.
Sustainability and ESG: Environmental and social criteria will be decisive in M&A strategies.
Impact of Regulations: Regulatory reforms in Turkey and globally will shape M&A activities.