As M&A activity continues to evolve, it’s crucial for dealmakers to stay ahead of the curve. At the 2025 JEGI CLARITY Media and Technology Conference, Senior Vice President at Datasite, Taylor Dixon, shared valuable insights on the current state of M&A, how technology—including AI—is reshaping the process, and what to expect in the coming years. Let’s dive into some key takeaways from his discussion alongside panelists Pat Donoghue, Nathan Janick, and Mark Solovy during the M&A Snapshot: Key Trends from the Frontlines panel, moderated by Rich Kanefsky.

2024 M&A: A Year of Recovery and Resilience

The global M&A landscape saw a slow start in 2024, but things began to pick up as the year progressed. Taylor Dixon pointed out that while deal activity lagged behind historical levels, there was a notable bounce-back in the latter half of the year. On Datasite, global deal activity increased by 12% in 2024 compared to 2023, with the Americas seeing an 11% rise, driven by improving macroeconomic conditions.

The technology, media, and telecom (TMT) sector experienced strong growth, with a 9% rise in activity driven by an AI boom and increasing cybersecurity needs. As companies continue to expand their digital capabilities, Dixon predicts that the TMT sector will remain a hotbed for M&A in 2025.

2025 M&A Outlook: Optimism Amidst Uncertainty

Looking forward to 2025, Dixon sees a global M&A rebound in the early months of the year. New deals on Datasite were up 18% in January and 13% in February compared to the same periods in 2024, signaling renewed optimism. The TMT sector led the charge, growing by 20% year-to-date.

This increase in M&A activity is partly fueled by a business-friendly agenda from the new administration and a more accommodating regulatory environment. However, Dixon also highlighted the challenges posed by shifting tariffs and policy changes, which have introduced some uncertainty in certain sectors.

The driving force behind the surge in TMT deals? Artificial intelligence (AI). As businesses increasingly invest in AI to enhance operations and stay competitive, M&A activity centered around AI is expected to continue to grow. Dixon noted that AI’s impact isn’t just confined to the technology sector—its influence is being felt across industries like healthcare, finance, manufacturing, and retail.

The Role of AI in M&A

AI is not only a game-changer for the industries that dealmakers are targeting but also for the M&A process itself. Dixon shared how AI is revolutionizing dealmaking by automating repetitive tasks, improving data analysis, and streamlining processes across all stages of the deal.

AI is playing a crucial role in due diligence, where it helps organize and categorize files needed for review, reducing human error and ensuring compliance with regulatory standards. Additionally, AI-powered tools are helping dealmakers identify potential targets faster by analyzing vast amounts of market data, including private, public, and paid sources.

Dealmakers are increasingly turning to AI to enhance their operations. According to research, 66% of global dealmakers cited exploring new generative AI tools as a top operational focus, while 42% highlighted increased productivity as a primary benefit. With AI becoming a core part of the M&A toolkit, Dixon expects its role to expand even further in the years to come.

Resilience in M&A: Adapting to a Changing Market

When asked about resilience in the M&A market, Dixon emphasized that M&A will continue to be a key tool for corporate transformation. "Private equity is holding onto assets that are maturing, and their investors want a return. Corporates need to transform, and the fastest way to do that is through transactions," he explained.

While economic conditions may slow down certain aspects of the M&A market, Dixon believes that the need for businesses to evolve—especially in the face of rapid change driven by AI—means that M&A will ultimately continue to be a vital part of corporate strategy.

"Being prepared is critical," Dixon said. "Companies that embrace proactive strategies, and leverage technology to enhance efficiencies will thrive in this evolving market."

Final Thoughts: The Future of M&A

As the M&A landscape continues to evolve, Taylor Dixon's insights provide a valuable roadmap for dealmakers navigating these uncertain times. Whether it's the accelerating pace of AI adoption or the changing macroeconomic conditions, Dixon’s perspective underscores the importance of resilience, adaptability, and technological innovation.

With the optimism surrounding 2025 and beyond, the future of M&A looks poised for growth, particularly in sectors driven by technological advancements like AI. Companies that are prepared to capitalize on these changes will be well-positioned to succeed in the rapidly evolving market.

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