Key Points

  • According to a recent report by PwC, despite high market expectations at the start of President Donald Trump's second term, U.S. M&A activity saw minimal growth in the first half of the year.
  • The report stated that an upward trend may still emerge in the future, but without clearer policies and stability, such a recovery will be difficult to achieve.
  • "Policy and economic unpredictability have suppressed overall deal volume," said Kevin Desai, leader of PwC's U.S. deals platform, in an interview.

In-Depth Analysis

PwC data shows that from January to the end of May, the total number of U.S. M&A deals was 4,535, roughly flat compared with 4,515 deals in the same period last year.

The Big Four accounting firm noted that before Trump's inauguration in January, the market had expected M&A activity to recover this year, but his administration's aggressive policies—especially in trade—have at least temporarily dampened companies' enthusiasm for pursuing new deals.

In its May "Pulse Survey," PwC found that 30% of organizations had paused or reassessed deals due to tariff issues.

"Deal growth has stalled because companies struggle to predict how new tariff policies will affect their business models, or whether these policies will change before implementation," the report said.

PwC stated that the current environment will create opportunities for strategic buyers who can act "quickly and decisively," and reminded companies to conduct scenario planning around sources of uncertainty more frequently—for example, shifting from quarterly or annual reviews to monthly ones.

The report specifically noted that chief financial officers need to carefully manage liquidity and the financial fundamentals of their enterprises.

"Adjust your balance sheet so that your company can act quickly when market conditions improve, or seize favorable buying or selling opportunities as they arise," the report advised.