EMERYVILLE, Calif., March 18, 2025 /PRNewswire/ — Dealmakers around the world expect to see more mergers and acquisitions (M&A) disputes in the year ahead despite renewed confidence that the deal market will perform better in 2025, according to global expert services and consulting firm BRG‘s M&A Disputes Report 2025, released today. Rising geopolitical tensions, ongoing antitrust scrutiny and economic volatility stemming from tariffs all could push deals into dispute territory in the coming months.
Dealmakers’ attempts to control for performance fluctuations and financial risks in an uncertain economic climate may have contributed to increased dispute exposure in 2024. Deal terms like purchase price agreements, put/call options and indemnity provisions were amongst the most prevalent contractual factors in last year’s disputes. Looking ahead, nearly one-third of respondents expect earnout provisions mitigating risk to feature prominently in disputes this year.
“From improved financing conditions and lower interest rates to uncertainty stemming from escalating geopolitical tensions and policy shifts, one thing is clear: Dealmakers are grappling with a markedly different M&A environment than they were in our last annual report,” said BRG Managing Director Mustafa Hadi, founder and editor of the annual BRG publication. “Our latest research finds that even as buyers and sellers prepare for an upswing in activity, they’ll need to address a complex array of ever-evolving dispute factors.”
Now in its sixth year, BRG’s M&A Disputes Report draws on insights from BRG experts, qualitative interviews with leading disputes and corporate lawyers, and a survey of more than 200 attorneys, private equity (PE) professionals and corporate finance advisors across Asia-Pacific (APAC); Europe, the Middle East and Africa (EMEA); North America; and Latin America.
Amidst continued fallout from the 2023 banking crisis, 43% of respondents saw an increase in M&A dispute activity within the sector—the highest of any industry category and an increase of 10 percentage points from last year’s report. Nearly half of dealmakers surveyed also anticipate further increases in financial services disputes in 2025 as M&A activity picks up and regulations relax.
To read the complete report, visit BRG’s website.
