Earth Capital Partners LLP: M&A Spring Awakening Sets a Strong Tone for 2025
Deal News | Jan 05, 2025 | Earth Capital Partners LLP
The first quarter of 2025 has seen a remarkable resurgence in global M&A activity, reaching over $1 trillion in deal value across 12,371 transactions. This represents an 18% increase compared to Q1 2024, signaling renewed confidence among businesses worldwide. North America emerged as a leader with $613.8 billion in deal value, while Europe maintained a strong performance with a 36% increase in deal count over its historical averages. The article also highlights a normalization in deal valuations, with the median EV/EBITDA multiple stabilizing at 9.6x, fostering a conducive environment for strategic acquisitions. Key impact sectors such as healthcare, materials & resources, and energy are driving significant investment, reflecting ongoing trends toward innovation and sustainability. As M&A participants gear up for continued momentum, the full impact of new tariffs by Donald Trump remains uncertain, adding an element of caution for future activity.
Sectors
- Mergers and Acquisitions
- Healthcare
- Sustainable Resources
- Energy
Geography
- North America – The region led with $613.8 billion in deal value and dominated the global leaderboard for M&A deals.
- Europe – Showed resilience with a strong increase in deal count and attractive valuations attracting capital.
- Asia – Involved in strategic megadeals contributing to global M&A momentum.
- Latin America – Part of the strategic megadeals, illustrated by the Panama Ports acquisition.
Industry
- Mergers and Acquisitions – The article discusses M&A activities, including trends, valuations, and geographic differences across the globe.
- Healthcare – Healthcare is a highlighted sector in the article, with significant investments due to demand for medical innovation.
- Sustainable Resources – Includes mention of investments into materials & resources that focus on sustainable supply chains and the circular economy.
- Energy – The energy sector is noted for investor interest in clean energy and climate resilience technologies.
Financials
- $1 trillion – Total value of global M&A deal-making in Q1 2025.
- 18% – Increase in global M&A deal value compared to Q1 2024.
- $613.8 billion – M&A deal value led by North America.
- 8.9x – European market EV/EBITDA valuation.
- 10.8x – North American market EV/EBITDA valuation.
- 9.6x – Median global EV/EBITDA multiple, indicating valuation normalization.
- $32.1 billion – Investment in the healthcare sector.
- $5.6 billion – Investment in the materials & resources sector.
- $3.6 billion – Investment in the energy sector.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Earth Capital Partners LLP | Advisor | Company | Provided advisory services featured in the discussion of global M&A trends. |
| Donald Trump | Government | Person | Former U.S. President; mentioned in context of tariffs that could impact future M&A activities. |