Sam-il PwC "This Year's M&A Keywords: Industrial Structure Reorganization, Supply Chain Diversification, Advanced Technology Acquisition"

‘2025 M&A Market Outlook’ Report Released and Seminar Held
"Gradual Recovery of M&A Expected in the Second Half...
Active Corporate Restructuring Anticipated"

The mergers and acquisitions (M&A) market, which has been in a slump for the past three years, is expected to recover as the second half of this year progresses. In particular, cross-border transactions by U.S. companies based on a strong dollar and the private credit market are anticipated to inject vitality into the M&A market.

On the 4th, Samil PwC announced the publication of the "2025 M&A Market Outlook" report containing these insights. PwC has annually analyzed and released global M&A market trends by industry at the beginning of each year, and Samil has published the report including analysis of the Korean market and investment strategies. A seminar on the same topic will be held on the 5th on the 2nd floor of the Samil PwC headquarters in Yongsan-gu, Seoul.

Macro Environment and M&A Market Impact. Provided by Samil PwC

According to the report, although expectations for increased M&A activity were high at the beginning of last year, uncertainty escalated due to sustained high interest rates and various political events such as the U.S. presidential election, leading to a continued slump until the end of the year. Despite many domestic and international uncertainties this year as well, the opening of the Trump 2.0 era is likely to reduce policy uncertainty, and market participants’ adaptability to the changed environment is expected to increase, gradually recovering the M&A market.

The report focused on market participants seeking new breakthroughs. It predicted that cross-border transactions by U.S. companies would increase based on the corporate-friendly policies of the second Trump administration, high corporate valuations, and a strong dollar. Additionally, in a mid-to-high interest rate environment, the private credit market was highlighted as one breakthrough. Private credit refers to loans provided by private equity funds or specialized investment institutions rather than traditional financial institutions such as banks.

The report stated, "With favorable returns and low loss rates, domestic and foreign institutional investors, asset management companies, and private equity (PE) firms are actively entering the private credit market, which will grow and invigorate the market for industrial restructuring."

By investor type, companies are expected to continue selling non-core assets to raise acquisition funds as demands for business innovation, such as AI-centered new technology development and new market exploration, increase. Private equity funds are also expected to accelerate M&A activities due to abundant capital capacity and exit pressure from existing portfolios.

The report urged that in the face of China’s technological pursuit, increased supply chain risks due to Trump’s policies, and AI-driven technological innovation, active M&A should be used as a solution for ▲industrial restructuring ▲supply chain diversification ▲advanced technology acquisition.

2025 M&A Strategy. Provided by Samil PwC

Min Jun-seon, head of the Deal Division at Samil PwC, said, “With continued low growth and China’s technological pursuit, the number of marginal companies (those whose interest expenses exceed operating profits) and industries entering structural decline is increasing,” adding, “It is time for cold-headed industrial restructuring for future leaps.” He also pointed out that to secure leadership in advanced industries, AI investment should be expanded across all areas including mobility, robotics, cybersecurity, smart homes, and healthcare.

Furthermore, the report includes a review of 2024 M&A performance and outlook for 2025 in six industries: ▲Consumer Goods ▲Energy, Utilities, and Materials ▲Financials ▲Healthcare ▲Industrials and Automotive ▲Information Technology (IT), Telecommunications, and Media. Detailed information about the report is available on the Samil PwC website.

This content was produced with the assistance of AI translation services.