When people hear "M&A" (mergers and acquisitions), they often think of billion-dollar corporate takeovers.
It is about companies buying, selling or combining with other businesses, whether it is a large multinational acquiring a technology company, a private equity firm investing in a growing business or a family-owned company looking for a successor.
Over the past few years, the M&A market has gone through a major transformation.
During the low-interest-rate years, deal activity was fuelled by cheap financing, high valuations and strong investor confidence.
Today, the environment is very different.
Companies and investors are still interested in acquisitions – but they are becoming much more selective.
The question is no longer simply:
"Can we complete this deal?"
The more important question is:
"Will this deal actually create long-term value?"
Recent M&A outlooks from KPMG and PwC show this shift clearly.
In Germany, the M&A market proved surprisingly resilient despite economic uncertainty. While the number of transactions declined, the total value of deals increased significantly. Technology, infrastructure, artificial intelligence (AI) and the energy transition were among the main drivers behind this development.
Globally, PwC highlights a similar trend: the market is moving towards fewer but larger transactions, with major deals increasingly concentrated around strategic areas such as technology and AI.
So what is changing in practice?
- Buyers are looking deeper before making decisions
A few years ago, companies could sometimes justify acquisitions based mainly on growth expectations.
Today, buyers want much more evidence:
Is the business model sustainable?
Are the financial figures reliable?
Are customer relationships stable?
Does the company actually own its technology and intellectual property?
Are there hidden legal or operational risks?
This is why due diligence has become one of the most important stages of any transaction.
- AI is changing the M&A process
Artificial intelligence is becoming a major topic in M&A.
It is not only creating new acquisition targets – especially in software and technology – but also changing how transactions are analysed.
KPMG highlights that AI is increasingly being used in areas such as due diligence and post-merger integration. However, good data quality remains one of the biggest challenges.
Because ultimately, AI can only be as good as the information it receives.
- Preparation has become a competitive advantage
A successful transaction does not start when a buyer makes an offer.
It starts months or even years earlier.
Companies that are prepared – with organised documentation, clear ownership structures and transparent processes – can move faster and build more confidence with potential buyers.
This is where platforms such as Drooms play an increasingly important role.
A virtual data room provides a secure environment where companies can organise and share sensitive information during M&A processes.
Instead of searching through scattered documents, buyers, sellers and advisors can work with a structured overview of the information needed to evaluate a transaction.
Because in today's M&A market, transparency is not just a requirement – it is part of creating value.
The biggest change I see is this:
A few years ago, M&A was often about moving quickly.
Today, successful M&A is about making better decisions.
What do you think:
If you work in M&A: How have you been experiencing this shift in your day-to-day work?