2025 – a year for deals

Factors

• According to the Financial Times, M&A advisory firms are reporting an increase in deal screening activity towards the end of 2024, a strong indicator that new deals are imminent.

• Private investment firms have a record $2.5 trillion of untapped capital awaiting the right time to allocate. This will drive accelerated acquisitions, expansion deals and changes in competitive markets. With capital on the move, new regulatory opportunities and accelerating industry changes, leaders must understand the new deal environment and actively shape their place in it.

• Regulatory changes are unlocking new deal potential. Analysts predict a shift to more business-friendly policies in the U.S., which will reduce barriers that have slowed transactions in recent years. However, tariffs could complicate global supply chains, creating challenges for some and opportunities for others. Companies facing rising costs or limited access to markets may need to rethink their strategies, while others may use the situation to forge strategic partnerships, streamline operations or pursue vertical integration for competitive advantage.

Steps for success

According to Forbes Bulgaria, winning a good deal goes through 4 steps.

• “Why” before “What”
  At the heart of every successful deal is a well-articulated strategic goal. Deals without a clearly outlined strategy often end in high costs and mistakes. A company that acquires assets just for the sake of growth or enters into partnerships without strategic alignment risks integration difficulties and a reduction in value created.

• Readiness
  Even the best deal loses value if the company fails to execute it effectively. Failures are often due to financial gaps, regulatory hurdles or slow internal processes that undermine negotiations. Leaders must ensure accurate financial reporting, robust legal controls and clear valuation strategies. This leads to deal readiness.

• Network and trust
  Building relationships drives the success of getting deals done. The most successful leaders proactively make contacts long before they need them. This provides access to key investors, partners and acquisition targets through participation in industry networks, meetings with private equity funds and important business forums. The best deals often happen when the contacts are already made, the trust is there, and the timing is perfect.

• Implementation
  Even the most promising deals can fail on execution if there is a lack of cultural fit, synergy among leaders, and a clear post-deal plan. One of the most commonly overlooked risks is cultural incompatibility. Acquisitions often fail not because of price differences, but because of different ways of working. Leaders need to consider in advance how employees will integrate, what leadership challenges may arise, and where operational tensions are likely to emerge.

TPA Bulgaria

+359 2 981 66 45/46/47

office@tpa-group.bg

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1000 Sofia