Following a global low in mergers and acquisitions (M&A) in 2024, leading consulting firms like PwC and Boston Consulting Group (BCG) expect a revival of the transaction markets. They rely on increasing demand for M&A consulting services to help the industry overcome the recent growth weakness.

Christoph Schweizer, CEO of BCG, told the Financial Times that the number of potential deals on his company's radar has significantly increased. Currently, there is a high demand for consulting services for due diligence, integration processes, and strategic transformations. Mohamed Kande, Global Chair of PwC, sees positive sentiment among CEOs: "Companies are looking for ways to reposition themselves and fundamentally rethink their business models.

Confidence in the industry is growing after the number of global M&A transactions fell to a nine-year low in 2024, according to data from the London Stock Exchange Group. Although the global deal volume exceeded three trillion US dollars for the first time since 2022, it remained well below the peak of 2021. The lull had noticeable effects on the consulting industry, particularly on the "Big Four" – Deloitte, EY, KPMG, and PwC.

Deloitte and EY reported the weakest revenue growth in 14 years for their most recent fiscal year. In the past two years, the industry has seen thousands of layoffs, including at McKinsey, PwC, and KPMG. Investment bankers are now betting on a revival of dealmaking in 2025, following political uncertainties surrounding global elections that dampened transaction business the previous year.

PwC sees increasing revenues not only from the M&A business but also through technological transformations and sustainability programs. BCG forecasts further double-digit growth, especially through efficiency improvement projects and transaction consulting.

A significant driver of the expected M&A renaissance is the high capital reserves of private equity funds. According to Preqin, global private equity and venture capital funds held $2.51 trillion in unused capital as of December. Many buyout firms are also under pressure to sell holdings that have been retained for longer periods.

The consultants expect additional tailwind from the US government. The prospect of a deregulated economy under Trump could provide new impetus for mergers and acquisitions. A leading partner of a major consultancy expressed optimism: "There is currently no company that is not thinking about M&A.

In the UK, political tailwinds are also expected to boost the demand for consulting services. PwC UK Consulting Head Jonathan House sees new opportunities particularly in the growth agenda of the British government.

In view of improved market forecasts, consulting firms are planning to hire again. PwC and BCG plan to expand their workforce in 2025 after cutting jobs in previous years. KPMG hired numerous M&A specialists in the boom year of 2021 and now has them ready for the expected upswing. Carole Streicher, Head of Deal Advisory at KPMG US, emphasized: "Our teams are well prepared – and we will hire more employees.