Large transactions are back
Earlier this year our colleague Ricardo Berner assessed in M&A is Making a Comeback. Are You Ready? that activity would bounce back. Though deal volumes decreased by 9% during the first half of 2025, deal values increased by 15% during the same period.1 The third quarter continued to see a decline in the number of deals signed, yet the rise in megadeals (transactions valued over $1B) has been particularly noteworthy, and Wall Street is abuzz with investment banking momentum. Q3 saw $1.26T in megadeals globally, a 40% YoY increase, with the average deal size up markedly.2 Banker demand has surged, with frequent lateral moves among advisory teams and fierce competition for talent. With leadership teams targeting large-scale, transformative acquisitions, there is renewed urgency for effective post-merger integration (PMI).
“In 2025, M&A will be a major path to achieve growth, drive efficiency, and capture new market opportunities. But it requires careful strategic planning, rigorous execution, and a deep understanding of the complexities involved.”
Ricardo Berner, Principal at HighPoint Associates
Larger deals tend to make PMI significantly more complex and resource intensive. While large transactions may promise greater synergies and strategic value, they also magnify operational, cultural, and other integration challenges that can erode deal value if mismanaged. As deal size grows, companies must integrate more operations, systems, and cultures, often across geographies. Larger deals face greater operational scope (e.g., merging extensive supply chains, IT systems, and management layers) and more complex governance (e.g., requiring detailed integration playbooks and stronger program management discipline), which need to be effectively managed.
Similarly, the potential for cultural friction and leadership misalignment is amplified at scale. PE-backed and strategic acquirers alike often underestimate the need for dedicated integration leadership, rather than relying on portfolio executives, as well as the importance of change management, culture alignment, and communication initiatives to preserve morale. As Alex Nesbitt discussed in HPA’s two-part PMI article, Why Intentions Matter in Making Mergers Work and Key Steps for Post-Merger Integration Success, a PMI process must be rigorous yet agile, empowering cross-functional leadership and celebrating quick wins to build momentum and excitement. In today’s landscape, the process should also leverage GenAI and Agentic AI.
Supercharge PMI with AI
GenAI and Agentic AI are profoundly reshaping PMI, shifting manual tasks to dynamic, insight driven processes. GenAI speeds up PMI’s early phases, rapidly analyzing deal data, surfacing conflicts and overlaps, and highlighting opportunities often hidden in documentation. For example, GenAI can unify customer data and improve integration accuracy, freeing up leaders to focus on retention and go-to-market execution.
GenAI use cases:
- Rapid review and summarization: Quickly distills thousands of documents, identifying legal and operational conflicts early
- Automated scenario modeling: Forecasts outcomes, prioritizing synergy opportunities from complex datasets
- Stakeholder engagement: Generates personalized communications for onboarding and executive updates
- First 100 days acceleration: Mines historical PMI data to reduce repetitive mistakes
Agentic AI brings autonomy to PMI execution, initiating and completing multi-step workflows. It can harmonize ERP records or optimize processes without human prompting, such as continuously monitoring suppliers or recommending cost-saving opportunities in finance.
Agentic AI use cases:
- Workflow orchestration: Automates complex workflows, flagging anomalies and routing tasks for seamless execution
- Real-time anomaly detection: Monitors milestones and KPIs, alerting teams to potential delays and risks
- Adaptive workflow management: Dynamically reallocates resources based on integration progress to stay agile
Together, GenAI and Agentic AI enable PMIs to move faster and with greater precision. As large, complex M&A transactions accelerate, success increasingly hinges on both strong PMI leadership and disciplined, tech-powered integration. Companies able to pair ambitious deal-making with advanced AI-driven PMI strategies are best positioned to capture enduring value, transforming large acquisitions from operational burdens into strategic advantages.
HighPoint Associates has deep experience in PMI and is working alongside clients to embed AI in the process. Contact us today to learn how our tailored solutions can help your organization maximize deal value and ensure successful integration.
1 2025 Mid-year Outlook: Global M&A Industry Trends (PwC)
2 For global M&A, third quarter was one of the best – and worst – in recent history (Reuters)
