8 factors for cross-border tech M&A In 2025

Cross-border deal-making faced challenges in early 2025 as geopolitical uncertainty rocked deal markets. In 2024, the volume of deals greater than $1 billion USD increased by 17% according to PwC, while smaller and mid-size deals fell by 18%.

So, will overall deal volumes bounce back in 2025, and what’s driving successful tech M&A? 

Drivers of successful tech M&A for 2025

In the new era of AI, tech company CEOs are focused on growth and transformation. It’s anticipated that 2025 will see more assets come to market from both private equity portfolio companies and non-core assets divested by corporate organizations, according to PwC. However, political volatility and continued high interest rates mean that decisions regarding M&A must be strategic.

Here are the factors that will drive success in tech deals for 2025. 

Strategic alignment

Successful cross-border deal-making begins with a strong understanding of the strategic goals. Whether it is market expansion, acquiring new technologies or diversifying the product and service offering, alignment on the strategic goals and the broader corporate vision will facilitate a smoother integration.

Tech deals may aim to reduce capability gaps and become highly focused on the core business. Finding alignment is key to success, following a lower volume of deals in 2024 as small and mid-market players failed to align on valuations.

Assessing geopolitical risk

Accurately assessing geopolitical risks for cross-border tech deals is essential in a year of elections. This means considering the impact of a potential change of government, policies, or regulations.

Robust due diligence and planning

Target sourcing and due diligence must extend beyond financial and legal reviews to include a comprehensive technology assessment. This will inform a post-acquisition integration plan that ensures no valuable information is lost when systems are combined. Planning to harmonize systems is critical to creating value while exposing the combined company to manageable risk.

Cultural compatibility

Cultural compatibility assessments are part of due diligence and will contribute to the success of the integration process. Leadership dynamics, working styles, and management philosophies will inform the change management process as the two companies combine and enable a clear strategy for communication through the transition.

Regulatory considerations

National security concerns may impact AI, defense, and energy sectors with stricter regulation, complex compliance requirements, and longer approval times. Preparing for payment, data privacy, and foreign investment hurdles early enables companies to remain agile and focus on continuity. Thorough regulatory due diligence ensures nothing is missed when assessing the risk and viability of the deal.

Sustainability 

Companies seeking a buyer should prioritize sustainability governance as buyers increasingly filter for long-term value and strong environmental, social, and governance (ESG) credentials.

Leadership during change

Strong leadership on both sides of a merger or acquisition can drive alignment and decisiveness throughout the deal cycle. Focus on continuous improvement starts at the top. A culture of continuous improvement enables the combined company to respond to change in both operational realities and market conditions.

Leveraging technology and AI in the deal-making process 

AI-powered tools can play a role in efficiently sourcing deal targets, analyzing large data sets to find risks and opportunities, and automating routine tasks. Predictive AI modelling can improve decision-making on deal viability and allow the teams on each side to focus on answering questions of the most engaged and best-fit companies.

For cross-border transactions, AI can assist with bridging language and cultural barriers by rapidly translating documents and enabling communication.

Close a successful tech deal in 2025 with the support of Ansarada’s centralized virtual data room

Built for corporate transactions, our virtual data room and deal-making toolkit enables cross-border deals to progress, no matter the complexity. With a free trial that extends until the first guest is invited, companies can prepare for due diligence using pre-set checklists to ensure nothing is missed. Customize your Q&A process and be ready to secure value quickly with Ansarada’s Deals Platform.