Q3 2025 market trends: What boards need to know

This article is based on the the latest Deal Drivers report, published by Datasite and Mergermarket.

M&A activity in Q3 2025 painted a mixed picture.  

Volumes fell in many markets, but total deal value rose in several regions, driven by a shift toward fewer, higher-value transactions. The market is moving more selectively, shaped by monetary policy, geopolitical tension, and evolving investor priorities. 

For boards, these trends signal the need for tighter oversight, more focused integration tracking, and sharper alignment on strategic outcomes. Whether your organisation is mid-transaction or monitoring post-deal delivery, Q3 offers clear lessons. 

This summary captures the key board-level signals from Datasite and Mergerlinks’ Q3 2025 Deal Drivers reports, with a focus on what directors need to watch as the year draws to a close. 

Global signals: Fewer deals, more strategic focus 

Across APAC, EMEA, and the Americas, Q3 2025 marked a turn in dealmaking behaviour. Volume declined across the board, but deal value remained resilient — in some cases rising significantly. The signal is clear: buyers are focusing on fewer transactions, but placing larger, more strategic bets. 

This concentration of value brings different expectations for oversight. With fewer deals absorbing more capital, boards are expected to be more rigorous in how transactions are evaluated, approved, and followed through. Strategic clarity and financial discipline remain essential, but they are no longer enough. Execution must now match ambition. 

For boards with recent or upcoming deals on the table, Q3 offers a reminder that governance frameworks should evolve with the market. This includes how risk is surfaced, how post-merger integration is tracked, and how alignment is maintained across functions and regions. 

The decisions being made at board level today will shape how resilient the organisation remains if market conditions shift again in Q4 and beyond. 

APAC: Activity slows as buyers grow more selective 

After two strong quarters, M&A across APAC lost momentum in Q3 2025. Deal value fell to US$215bn, down 27.7% from the previous quarter and 9.2% year-on-year. Volume also declined, with 2,462 deals recorded, a 12.2% drop that reflects a shift from rapid execution to greater caution. 

Greater China continued to lead in terms of forward pipeline activity, particularly in industrials, TMT, and life sciences. However, regulatory scrutiny increased, including for foreign-to-foreign transactions involving China. Elsewhere in the region, India and Southeast Asia sustained steadier activity, supported by long-term growth drivers and ongoing supply chain realignment. 

For boards, this shift calls for a recalibration of focus: 

• Pay close attention to jurisdictional risks, especially in markets with evolving regulatory positions 

• Ensure integration plans remain realistic in light of slower deal completion timelines 

• Monitor early delivery signals, particularly where plans rely on high-growth assumptions  

While the regional picture has changed, strategic opportunities remain. The challenge for boards is to adapt oversight without defaulting to delay. 

EMEA: Lower volumes, higher concentration of value 

In EMEA, Q3 2025 saw a shift away from deal quantity toward deal concentration. The region recorded 3,711 transactions, down 23.4% year-on-year, yet total deal value rose by 41.6% to €307.1bn. This reflects a market leaning toward fewer, larger, and more strategic transactions, particularly in energy, renewables, infrastructure, and TMT. 

Macroeconomic conditions were relatively steady. Inflation neared target, GDP forecasts improved, and the European Central Bank held rates flat. At the same time, regulatory focus increased. The EU is revising its merger guidelines to account for innovation impact and is giving more attention to smaller transactions that previously fell outside formal review. 

Pipeline data from Mergermarket highlighted DACH as a hotspot, with high volumes of anticipated activity in industrials and TMT. 

For boards operating in or targeting this region: 

• Revisit how current investment criteria align with the tilt toward large-cap, strategic repositioning 

• Review whether internal governance structures are equipped to support more complex integrations 

• Ensure regulatory engagement begins early, particularly where cross-border or innovation-related scrutiny is likely 

The data suggests that boards may need to be more selective, but also more involved, as strategic stakes rise. 

Americas: Fewer deals, but a sharp rise in value 

In Q3 2025, the Americas recorded the sharpest divergence between deal volume and value seen in recent years. Volume fell to 3,235 deals, down 14.6% year-on-year. At the same time, aggregate value surged to US$817bn, a 51.6% increase and the region’s highest total in four years. 

This pattern reflects a market concentrating around fewer, higher-value opportunities. Technology, media and telecoms (TMT) led activity, with buyers targeting AI infrastructure, semiconductors, and cloud-based platforms. Recurring-revenue models remained a key theme, attracting both strategic and financial investors. 

Monetary policy also played a role. The Federal Reserve cut interest rates again in September as economic indicators softened. While the outlook remains uncertain, the environment continues to favour selectivity over volume. 

For boards involved in active transactions across the Americas: 

• Ensure governance processes are calibrated to match the scale and scrutiny of higher-value deals 

• Focus board-level discussions on execution risk, not just deal approval 

• Track integration progress against early indicators, particularly in platform or roll-up models  

The value of each deal is rising. The board’s ability to maintain visibility and discipline throughout the transaction lifecycle should rise with it. 

What boards should prioritise in Q4 

As deal activity becomes more selective, the quality of governance plays a larger role in determining outcomes. Board meetings remain a key point of visibility during this period, helping directors stay close to integration progress without stepping into operational detail. 

Here are three areas that should guide board focus in Q4: 

1. Revisit strategic alignment in the boardroom 

The assumptions behind a transaction can shift quickly. Board meetings provide the forum to test whether the deal’s objectives still reflect the reality on the ground. Discussion should centre on strategic intent, not just delivery timelines. 

2. Use agendas to track early signals 

Integration success often shows up first in leading indicators, not the headline numbers. Boards should ensure meetings include structured reporting on talent, customer impact, and operational challenges. These insights help boards act before issues escalate.  

3. Calibrate meeting rhythm to complexity 

Boards may need to adjust how often they meet, or how agendas are shaped. A quarterly cadence may not give enough visibility into fast-moving integrations. More frequent, tightly structured sessions can help maintain momentum and reduce ambiguity. 

Where capital is concentrated in fewer, larger deals, board meetings become more than a formality. They are a mechanism to test strategy, reinforce accountability, and keep delivery aligned with expectations. 

A steady structure for a shifting environment 

Q3 2025 did not present a single story for global M&A, but a pattern did emerge. Across regions, dealmaking became more focused, more deliberate, and more dependent on clear strategic intent. As volume slowed and value increased, the role of the board came into sharper view. 

In this environment, well-run board meetings are not a procedural step. They are a structural advantage. When agendas are aligned with priorities, when meeting materials reflect current risk, and when follow-up is reliable, boards are better equipped to guide complex transitions. 

As Q4 unfolds, this structure matters. Whether your board is assessing a new transaction, overseeing integration, or preparing for 2026, consistent governance practices will support better decisions. 

Sherpany makes that possible. From preparation to structured follow-up, our platform helps boards stay focused, informed, and aligned throughout the meeting lifecycle.  

Book a free consultation to see how Sherpany can support your board.