M&A Spotlight
With acquisition activity heating up, we mined Corbin Analytics and our deep experience serving on M&A teams to provide actionable insights and best practices to create shareholder value.
Setting the Stage: 2025 U.S. Mergers & Acquisitions Review
Coming into 2025, optimism for a rebound in M&A ran high fueled by expectations for deregulation and a more favorable tax policy backdrop under the new U.S. Administration. With Q3 earnings closely approaching, investors are setting their sights on the final quarter of 2025 and 2026.
After a slow start to the year, M&A momentum has ramped up in recent months, with July marking an inflection point with the surge of large deals. As a result, 2025 deal values through July registered well ahead of 2024 levels over the same timeframe. This comes despite deal volumes holding steady to slightly down. As such, we are reinforcing key strategy and investor communication elements of our proprietary M&A research, as well as showcasing recent examples of effective M&A investor communications.
Trends Behind the Headlines: M&A Momentum Building with a Pickup in Large Deals
A deeper dive reveals a notable shift, with July representing a clear inflection point as aggregate deal values jumped 58% MoM and more than 50% YoY.
To examine where this year’s large deals are occurring, we analyzed M&A trends across sectors with a focus on transactions greater than $100M, as shown in the table below.
Notably, Communications and Industrials stand out for their large increase in total deal values through July 2025—up 585% and 184% YoY, respectively—despite a decline in the total number of acquisitions relative to 2024 over the same timeframe. Within Industrials, the bulk of large deals has been most concentrated in Aerospace & Defense and Machinery.
Meanwhile, deal activity in the Utilities sector has seen a massive spike YoY, albeit off a low base, driven by several large acquisitions tied to escalating demand for power and data center infrastructure investment. Materials and Energy, both in prolonged downturns, are the only two sectors to see a decrease in deal values and volumes.
Insights from our Proprietary M&A Research and Experience
Even as deal values climb, history reminds us that most acquisitions fail to deliver, making disciplined strategy and communication even more critical. Prominent academic studies show that 70% to 90% of all acquisitions fail1. Further, our proprietary research finds M&A Track Record receives the lowest rating from the investment community among more than 10 management benchmarks.
Against the Street’s high bar, our research points to two consistent company differentiators that earn investor confidence: strong Strategic Fit and instituting an M&A framework.
Strategic Fit Drives M&A Success
To support client outperformance, we queried investors on critical M&A execution and communication success factors. The result:
- Strategic Fit is by far the leading determinant of M&A success (74%), followed by Overall ROIC (58%) and Price Paid (55%)
- Notably, EPS Accretion, previously identified as one of the most critical measures in our ongoing research, falls lower on the scale (48%)
- 46% of the investment community expect EPS accretion within two years of close; 32% expect it within the first full year
M&A Frameworks Set the Stage for Maximizing Credibility and Investor Buy-in
Developing and regularly communicating an M&A framework is one of the most impactful steps a company can take to build confidence with the investment community. This framework should encompass both strategic and financial criteria and serve as an anchoring mechanism for which the company’s acquisition activities are evaluated and justified.
Of the companies that score in the top quartile of our Corbin Analytics database across M&A benchmarks, nearly 90% have an established and regularly communicated M&A framework, with many enhancing it through acquisition scorecards that benchmark past acquisitions.
As shown, this group outperforms across every normative M&A measure, led by — you guessed it — Strategic Fit.
- 88% of top-quartile companies in the Corbin Analytics database have an established and regularly communicated M&A framework
- Additionally, 86% of top-quartile companies supplement their framework with an “M&A Scorecard” and benchmark the strategic and financial filters highlighted within the framework against their acquisition history
To garner insights into M&A framework elements, we also conducted an analysis of 100 M&A frameworks from public companies of at least $1B in market cap across all sectors. Our insights reveal Improving Market Positioning, Extending Customer Reach, and having Clear Operational Synergies are the most oft-cited strategic filters, whereas Return on Investment, Growth, and Earnings metrics represent leading financial benchmarks.
Ultimately, effective communication is the throughline – it shapes investor perception, frames the strategic fit, and lays the groundwork for successful execution.
Recent Best-in-Class M&A Communication Examples
To provide a selection of best-in-class communication examples, we examined some of the largest acquisitions announced in recent months and identified several that were particularly well received by the Street, as reflected by better than average post-announcement stock price performance and largely positive analyst takeaways.
A closer look at their investor materials reveals these companies followed the playbook, prominently featuring the rationale for the transaction — Strategic Fit — along with the financial benefits throughout their announcement communications.
July 9, 2025 – Merck to acquire Verona Pharma (transaction value: ~$10B)
Press release:
Acquisition presentation in conjunction with webcast/investor call:
May 19, 2025 – Sanmina to acquire the data center infrastructure manufacturing business of ZT Systems from AMD (transaction value: ~$3B)
Press release:
Acquisition presentation in conjunction with webcast/investor call:
March 24, 2025 – Roper Technologies to acquire CentralReach (transaction value: ~$1.7B)
Press release:
Acquisition presentation:
July 1, 2025 – Packaging Corporation of America Announces Agreement to Purchase Greif Containerboard Business (transaction value: ~$1.8B)
Press release:
Acquisition presentation:
As highlighted above, large deals are on the rise with July’s OBBBA passage having delivered clarity on the tax regime into 2026 and signs of a less restrictive regulatory environment seen providing a more favorable M&A backdrop.
That said, our buy-side research has consistently shown investors remain skeptical of large, transformative deals, with a greater preference for strategic bolt-on acquisitions—something we will be watching closely for any shift in sentiment heading into Q3 earnings season and into 2026 as we conduct our Inside The Buy-Side® research.
To be sure, effective communication can bridge the gap, build credibility, and secure investor buy-in. As such, we offer the following recommendations based on our proprietary research and more than a decade supporting clients in their M&A communications.
Key Recommendations
- Maintain a Pulse on Investor Cash Deployment Preferences: Regularly survey and engage with your investor base to stay updated on their evolving priorities
- Institute and Regularly Communicate an M&A Framework: Define and consistently communicate an M&A framework to prevent negative surprises and demonstrate a disciplined approach to growth and value creation
- When in Doubt About Whether an Acquisition Warrants a Call, Err on the Side of Transparency: Prioritize comprehensive, educational communication to build and maintain investor confidence
- If New to Pursuing M&A — or Restarting after a Prolonged Hiatus — Seed Plant: Lay the necessary foundational messaging through thoughtful commentary and via investor touchpoints, preparing stakeholders for a potential shift in strategy and ensuring your first moves are received with context rather than surprise
- Provide Regular Updates on Earnings Calls: Consistently provide updates on earnings calls post-close to educate investors and build confidence in your company’s acquisition acumen
For more M&A insights, including a comprehensive view of investor preferences and pre- and post-acquisition communication best practices, see our leading edge research — M&A: Investor Communication Roadmap for Success.
In Closing
We hope you’ve found this spotlight on one of the Corbin Critical Five: Capital Allocation—and specifically M&A—insightful and practical. Building an M&A track record in the eyes of the Street is hardly a simple endeavor. However, there is a clear, proven approach to maximizing shareholder value, which is part execution and part communication. Whether you’re currently preparing, announcing, or following through on your acquisition communications, we have a team of subject matter experts ready to support you every step of the way.
- Source: Harvard Business Review