M&A deals are taking longer to complete. New research from Ideals suggests this trend reflects a deeper shift in how transactions are executed, and that the pace of dealmaking may soon begin to change.
Analysis published in the Ideals M&A Outlook 2026 shows the average M&A transaction took 264 days to complete in 2025, up from 205 days in 2020. Although the year-on-year increase was modest, the longer-term trend points to a steady growth in deal timelines.
The data is based on transactions opened and managed through the Ideals Virtual Data Room, combined with broader industry research. The findings suggest that the main driver is not inefficiency, but growing complexity in how deals are evaluated and executed.
The complexity behind longer deal timelines
Modern M&A transactions involve more stakeholders and deeper scrutiny than they once did. Larger deal teams, stricter due diligence requirements and expanding regulatory oversight all contribute to longer timelines.
“Larger deal teams generally mean that more review rounds take place and more stakeholders need to be satisfied,” explains Deven Monga, VP of Sales, North America at Ideals. “As the number of participants grows, so too does the time required to manage complexity and reach closure.”
Research from McKinsey shows that median signing-to-closing periods have increased by around 25% over the past two decades, highlighting the gradual slowdown in the pace of dealmaking.
Strict regulation slows Europe down
The pace of dealmaking varies significantly across regions, reflecting differences in regulatory complexity and deal structures.
Europe illustrates this most clearly. Stricter regulatory requirements and more structured diligence processes are adding layers to transactions, contributing to longer deal timelines across the region.
“In Europe, the market has shifted toward smaller mid-market deals, while the US continues to focus on fewer but larger transactions,” explains Nitya Srivastava, Engagement Manager at EY-Parthenon.
“Europe has also become stricter on sell-side diligence and regulatory requirements, whereas the US remains more flexible, especially around AI and the depth of review.”
In Europe, the market has shifted toward smaller mid-market deals, while the US continues to focus on fewer but larger transactions.
Nitya Srivastava, Engagement Manager at EY-Parthenon
Elsewhere, markets where deal processes are less constrained appear to be moving faster. North America stood out as the fastest-moving major market, with average timelines shortening from 257 to 250 days, even as deal activity grew 26%, according to BCG.
Asia and Oceania saw the most significant acceleration, with deal timelines shortening 11% year-on-year. Analysis from A&O Shearman suggests that regulatory and market reforms in the region helped clarify expectations and streamline deal execution.
Tech-intensive deals lag behind
Industry differences also show how complexity affects the speed of deals. Transactions involving technology businesses typically take longer than those in service sectors.
In 2025, technology-intensive deals — such as biotech and utilities transactions — took an average of 322 days to complete, compared with 250 days for service-oriented transactions.
The longer timelines reflect the additional effort needed to evaluate complex equipment, technical systems, intellectual property and projected growth.
“Due diligence tends to take longer for tech deals given the complexity of reviewing technology and reliance on forecasts,” says Sanjar Abdurakhmonov, Vice President at Citi. “Service-oriented businesses, by contrast, are easier to model using historical performance and benchmarks.”
Due diligence tends to take longer for tech deals given the complexity of reviewing technology and reliance on forecasts.
Sanjar Abdurakhmonov, Vice President at Citi
Sectors with clearer assets and financial models moved faster. Real estate deals, for example, saw timelines fall 24%, helped by stabilizing interest rates and greater certainty around financing.
Will AI help dealmakers keep up with growing complexity?
The research from Ideals reflects a shift in how transactions are executed. Today, M&A involves more stakeholders, deeper diligence and greater regulatory scrutiny than just a few years ago. Larger deal sizes and higher valuations have reduced the margin for error, prompting buyers to assess risks more carefully before committing capital.
Technology may help rebalance this dynamic. AI is already speeding up the M&A workflow, from document review to deal sourcing and valuation analysis.
For now, however, these efficiency gains are being reinvested into deeper analysis. This means shorter timelines are not yet being realized.
Explore the full analysis in the Ideals M&A Outlook 2026.
