Navigating Buy-Side Success in a Shifting M&A Landscape

Insight by Zamani Ngidi, Business Unit Manager for M&A and Cyber Solutions at Aon South Africa

Global mergers and acquisitions (M&A) activity is regaining momentum, driven by pent-up demand and the reallocation of sidelined capital. However, while deal flows are accelerating, buyers face an increasingly complex environment where success depends on deep preparation, strategic clarity and adaptability.

The 2025 Deal Market View report surveyed senior executives from corporate development teams and private equity firms involved in buy-side transactions, comprising of 40% of respondents from EMEA and 60% from North America. The report found that: 
•    100% of respondents view due diligence as extremely important for M&A success.
•    56% of respondents prioritise long-term strategic goals in exit planning, especially corporates (69%).
•    56% of respondents expect near-term valuation increases, with 24% anticipating significant rises.
•    48% foresee widening gaps between buyer and seller valuation expectations.

Key Factors Shaping Today’s M&A Market
The dynamics of the buy-side environment are being reshaped by a combination of financial, competitive and strategic forces. Understanding these drivers is essential for buyers seeking to identify opportunities, manage risks and position themselves for success in a crowded market. Among the most significant factors influencing deal-making today are:
1.    Pent-up Demand and Sidelined Capital
Delayed transactions from recent years are now materialising, while significant amounts of uncommitted capital are being deployed. This surge is fuelling stronger deal flows across global markets.
2.    Increased Deal Complexity
Heightened scrutiny around due diligence, consideration of long-term exit strategies and widening valuation gaps are making buy-side processes more intricate and demanding.
3.    Rising Valuations
With expectations that valuations will continue to rise, a disconnect is emerging between buyer and seller pricing, complicating negotiations and deal closures.
4.    Competitive Environment
Private equity firms are entering the market with record levels of dry powder, intensifying competition with corporates for high-quality assets.
5.    Strategic Alignment
More than ever, buyers are prioritising acquisitions that fit seamlessly into their long-term strategic objectives to secure sustainable value creation and competitive advantage.

Strategies for Gaining a Competitive Edge
While the challenges are clear, so too are the opportunities for those who take a disciplined and forward-looking approach. To succeed in this competitive and fast-moving market, buyers must go beyond transactional thinking and adopt strategies that emphasise long-term value creation, risk management and strategic fit. Proven approaches include:
•    In-depth Due Diligence
Comprehensive analysis of operational, compliance, ESG and supply chain risks ensures that buyers avoid overpaying while strengthening their negotiation and post-merger integration positions.
•    Focus on Strategic Fit
Evaluating whether a target aligns with long-term strategic objectives helps ensure the sustainability and resilience of the investment.
•    Managing Valuation Gaps
Creative mechanisms such as purchase price agreements are being used to bridge differences in buyer and seller expectations while reflecting real market conditions.
•    Strategic Reviews
Corporates are increasingly conducting strategic reviews to clarify and communicate their long-term goals, improving confidence among stakeholders and positioning themselves more strongly in deal negotiations.
•    Market Monitoring
PE firms and corporates alike are closely tracking financial projections and industry trends to optimise deal timing, maximise valuations and enhance exit strategies.

Today’s buy-side M&A landscape is defined by both opportunity and complexity. While competition, valuations and shifting market dynamics pose challenges, buyers who embrace disciplined due diligence, strategic alignment and innovative deal structures are better positioned to achieve successful, value-creating outcomes. In this fast-moving environment, preparation and foresight are the keys to securing a competitive edge.

Ends…

Disclaimer
The contents hereof should not be construed as legal advice on any matter. You should not act or refrain from acting on the basis of any content included in this communication without seeking professional legal counsel. This communication does not constitute or create a lawyer-client relationship between us.

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