​M&A predicted to increase in 2025 – but dealmakers unprepared for recovery

M&A is predicted to increase in 2025, but dealmakers are unprepared for the recovery.

That is according to WTW, which said that most senior human resource (HR) professionals across the industry “have expressed concern” about their company’s ”level of preparedness for future transactions”.

Research published by the broker today (24 June 2025) showed that 54% of senior HR professionals felt that deal activity will increase follow a slow start to 2025.

However, HR teams state that they are under increasing pressure, with 65% feeling less than fully prepared to handle their deal portfolio.

Respondents acknowledged significant challenges to execute HR due diligence (HRDD), which typically includes a thorough review of a target company’s human resources, policies and practices to assess potential liabilities, synergies and risks related to the workforce.

Jim Plomer, senior director of M&A integrated global solutions at WTW, said: “Low deal volumes during the first half of 2025 suggest pent-up demand fuelling a new wave of deals when market stability improves.

“However, a majority of companies have expressed concern about their level of preparedness for future transactions, exacerbated by the possibility that timelines will need to be accelerated if the objective is to complete by year-end.”

Other concerns

WTW surveyed over 80 HR leaders for the survey.

Survey respondents also viewed data completeness, quality and integrity as their top due diligence challenges (66%).

Also, less than one in five survey respondents believe their HR teams have been properly included in preliminary negotiations.

“The role of HR should already be in full swing even before M&A discussions take shape, looking at the culture, the people, their values and whether they will fit,” Plomer said.

“Proactively assessing people-related challenges and opportunities is critical to enhancing deal value and easing integration.”