After four consecutive years of lengthening deal timelines, there are signs we might be picking up the pace. The M&A Deal Trends Report 2025 from Ideals found that the average time to close a deal dropped to 255 days in 2024, a 4% decline compared to 2023.
In the US, that decline was even more pronounced, with deal timelines shortening by 7%.
While that may sound promising, it doesn’t tell the full story. In the report, leading dealmakers shared their perspectives on what’s shaping M&A in 2025.
This year’s contributors included:
- Chin-Harn Leong, Partner, TMT Transaction Services at KPMG
- David Acharya, Managing Partner at Acharya Capital Partners
- Arlene Ortiz-Leytte, M&A and PE Partner at Herbert Smith Freehills Kramer
Below are some of the key takeaways. For the full analysis, download the report here.
Capital is flowing, but caution hasn’t gone away
A key driver behind shorter deal timelines in 2024 was a more favorable financing environment.
“Interest rate stability is beginning to take hold,” says Chin-Harn Leong, Partner, TMT Transaction Services at KPMG. “That reduces macroeconomic uncertainty, makes financing more accessible, and increases investors’ willingness to pay for the right businesses.”
Following several years of rising interest rates and tightening credit conditions, dealmaking experienced a welcome shift in 2024. Inflation eased, rates began to stabilize, and capital started flowing again.
Interest rate stability makes financing more accessible and increases investors’ willingness to pay for the right businesses.
Chin-Harn Leong, Partner, TMT Transactions Services at KPMG
With the cost of capital becoming less volatile, investor confidence started to rebound. Funds that had sat on the sidelines began to be deployed, especially among private equity firms, who faced pressure to invest their dry powder. This drove competitive bidding for assets and a renewed effort to get deals done.
Technology is a key deal driver
AI and advanced analytics have become indispensable tools in M&A. Dealmakers are using technology to accelerate due diligence and remove bottlenecks such as reviewing contracts or assessing regulatory risk.
“AI compresses processing time and sharpens risk identification,” Leong explains. “It enables a more rigorous, data-led approach to diligence.”
This shift is especially clear in the tech, media, and telecom (TMT) space. According to the report, TMT deals were among the fastest to close in 2024, averaging 244 days, roughly 13% faster than the broader market.
AI enables a more rigorous, data-led approach to diligence.
Chin-Harn Leong, Partner, TMT Transactions Services at KPMG
Not only is AI speeding up transactions, it’s also driving investment in the TMT sector. Demand is surging for infrastructure assets needed to support AI growth, including data centers, fiber networks, and cybersecurity platforms.
Due diligence is going deeper
While AI can accelerate deal workflows, it can’t remove the growing need for scrutiny in today’s uncertain economic and geopolitical environment. Despite deal timelines improving slightly, M&A professionals are reviewing transaction data more thoroughly before finalizing the deal.
“In good times, deals move faster because competition is fierce, debt markets are flowing, and the focus is on growth indicators,” says David Acharya, Managing Partner at Acharya Capital Partners.
“Now, with market volatility and geopolitical concerns, we are digging deeper into financial and operating data, seeking affirmation of continuing financial performance and heightened downside protection,” he adds.
This deeper diligence is extending across the full deal lifecycle, from early vetting through to post-close integration.
With market volatility and geopolitical concerns, we are digging deeper into financial and operating data.
David Acharya, Managing Partner at Acharya Capital Partners
The report found that although the average number of days to close a deal declined in 2024, the amount of work conducted during each deal increased significantly. Insights from Ideals revealed that M&A professionals spent on average 41% more time in virtual data rooms (VDRs) last year compared to 2023.
Buyers are raising the bar
With due diligence becoming more thorough, legal teams are being kept busy.
“Advisors are now being instructed to dig deeper, scrutinizing the quality of earnings,” says Arlene Ortiz-Leytte, M&A and PE Partner at Herbert Smith Freehills Kramer. “Buyers want greater assurance that financial performance is reliable — not just a short-term spike — and that their investment thesis will come to fruition.”
Legal teams are reviewing everything from contractual obligations, regulatory exposures, and environmental, social, and governance (ESG) liabilities.
Advisors are now being instructed to dig deeper, scrutinizing the quality of earnings.
Arlene Ortiz-Leytte, M&A and PE Partner at Herbert Smith Freehills Kramer
To further mitigate risk, buyers are also demanding stronger deal protections, including earn-outs, representations and warranties, and other contractual mechanisms. These measures are critical to safeguard their investments and manage downside risk upfront.
Has dealmaking turned a corner?
It’s too early to draw firm conclusions. The 4% drop in average deal timelines in 2024 is a positive sign and proof that dealmaking can regain momentum under the right conditions.
However, persistent macroeconomic uncertainty and heightened deal scrutiny continue to cloud the outlook.
For a deeper dive into the data, expert perspectives, and insights on where the market is headed, download the Ideals M&A Deal Trends Report 2025.
Methodology
The figures referenced in this article are based on anonymized data collected from Ideals Virtual Data Room customers on the sell and buy sides of M&A deals. Deal duration was calculated as the time between the first non-admin invited and the closure of the room. Ideals also measured the number of hours spent working on documents within the room.
