2024 was a dynamic year in M&A. As FGS Global supported a wide range of notable transactions, several key communications trends emerged across regions and sectors – and the common thread in all these engagements was that as deal complexity has risen, so has the involvement and influence of a broader array of stakeholders.
Looking ahead, to successfully launch, protect and complete transactions in 2025, companies must consider and strategically engage multiple stakeholders throughout the deal process. We expect boards and management teams undertaking M&A in 2025 will especially encounter stakeholder challenges in four specific dimensions of M&A, each of which will require a considered communications approach:
1. Cross-Border M&A: Prioritizing Political Stakeholders
Last year, the global regulatory environment continued to complicate an already challenging deal landscape. Many governments around the world embraced protectionist policies, with regulators – including the US DOJ and FTC, as well as the EU Commission and individual countries – taking aggressive stances on transaction approvals. Broader political concerns over foreign investment also reflected this rigid sentiment: In research conducted by FGS Global, 80% of global political decision-makers said they believe FDI screening should be applied more stringently.1
As nonfinancial stakeholders thus became more influential in M&A outcomes, government relations also became an increasingly important part of the dealmaking process – one that must be included from the outset. A sophisticated and integrated strategic communications and government relations approach that understands and assesses geopolitical factors is now paramount, especially for cross-border deals. In these situations, companies must carefully explore the nuances of local markets and craft specific, targeted messages to resonate with key audiences in those regions.
2. Hostile M&A: Embracing a Holistic Approach to Stakeholder Management
2024 also saw a number of high-profile unsolicited transactions in the US and around the world. For example, in APAC, decades-long norms began to shift, with growing instances of unsolicited takeovers. There was also an increasing recognition across the region, especially among Japanese companies, of the need to think differently about maximizing shareholder value, lest they risk becoming a target. This trend again showed the need to consider a wider range of stakeholders than in the past – in hostile transactions, anyone from a franchisee to a labor union may have an agenda and thus could become a friend or a foe.
Engaging each of these groups thoughtfully and directly is essential. As we saw many times, underestimating, misunderstanding or miscommunicating to even just one impassioned group could make or break a deal.
3. Distressed M&A: The Debt Community as Another Key Stakeholder Group
Distressed transactions where the target company was either undertaking an in-court or out-of-court restructuring, or was rumored to do so, proliferated in 2024. This trend was clearly seen in the US, where, according to Mergermarket, deals categorized as “distressed,” increased nearly 40% in 2024 compared to the previous year.2 Similarly, non-core asset sales from larger companies are expected to be the biggest sell-side driver of European M&A activity throughout 2025,3 while in Germany, 62% of experts in restructuring and insolvency said they expect to see an increase in distressed M&A deals in 2025.4
Transactions like these have always posed communications challenges, as they activate two separate but parallel media universes: traditional M&A beat journalists, and debt reporters specializing in corporate financial restructurings. Notably, the latter group tends to be well-connected to the banks, bondholders and other lenders that are party to these transactions – and privy to key deal information. The result is a far higher likelihood of media leaks containing ever more detail. Crafting and managing a deal narrative that works across debt and equity investors, as well as other stakeholders, is thus critical for distressed M&A.
4. Activism: The M&A Thesis Returns
Following a strong year for M&A activism in 2024, where activity topped five-year average levels globally,5 and a continually strengthening deal environment, it is likely that the activist playbook will more frequently include sales and spin-offs in 2025. This adds a new layer of complexity to both activism preparedness and M&A strategy. Companies must be careful to define a clear M&A strategy that can be communicated directly and succinctly, as this can help prevent activist campaigns and defend against them. They must also be prepared to clearly articulate not only the details of that strategy but the logic behind it to activist investors and other core stakeholder groups.
Ultimately, regardless of how M&A activity unfolds in 2025's uncertain political and economic landscape, one thing is sure: deal communications are more complex – and potentially more consequential – than ever. Multiple stakeholders mean multi-dimensional challenges, necessitating flexibility, transparency, and above all, vigilance in developing a holistic and strategic approach. A global outlook and coordinated communications gameplan are – now more than ever – the foundation for M&A success.
With the expertise of FGS Global, organizations can navigate these complexities effectively, helping to ensure success in M&A.
References
1 - FGS Global: https://fgsglobal.com/insights/1e469755-f296-4fc2-aa9a-d6b34df78095
2 - Mergermarket: Data as of 24 January 2025 (UTC)
3 - CMS: https://cms.law/en/deu/publication/cms-european-m-a-outlook-2025/european-distressed-m-a-activity-ahead
4 - Kearney: https://www.de.kearney.com/pressecenter/distressed-m-and-a
5 - Lazard: https://www.lazard.com/research-insights/annual-review-of-shareholder-activism-2024/