Global corporate dealmaking has been filled with optimism, as there are signs that a revival of merger and acquisition transactions will take place, as there has been a period of uncertainty. Investment bankers were dealing with nervous clients in the previous periods, as there were uncertainties in relation to merger and acquisition transactions, but now investment bankers are inundated with inquiries over strategic transactions. This has been brought about by the stabilization of the economy; hence, there are signs that a major shift in corporate strategies has taken place.
Economic stabilization enhances corporate confidence
The world in 2025 has marked the beginning of a new era of stability, acceleration, and expansion. There was a period of a couple of years that was marked by upheavals, such as emerging from a pandemic, then a period of rising inflation; world conditions were now ideal. This meant that there would be a stable rate of interest, which would help businesses make exact forecasts of their rate of interest. This resulted in an expansion in technology.
There were various factors that ensured that optimism in business sectors was fostered. These factors include a stable, lightly accommodative monetary policy environment that was established by various key central banks, such as that in the United States, which is controlled by the Federal Reserve, as well as that of the European Central Bank. A projected growth of 2.9% in world trade volume in 2025, as foreseen by the World Trade Organization, ensured that a stable platform for businesses to grow would emerge.
IPO markets experience a huge bump in recovery
The companies that were AI-native were able to derive a great benefit over traditional companies, as their predictive capabilities were enhanced by as much as 30% over and above those of traditional companies. The operation costs of these companies were also low due to automation, with certain companies able to cut their operation costs by as much as 40%. The innovation cycles for these companies were also reduced, with companies able to launch their product 50% sooner than traditional companies.
The third quarter of 2025 also marked a sudden change in terms of IPOs globally, where 370 companies were listed on various stock exchanges, accumulating a total amount of $48.2 billion. This marked a substantial increase of 19% in volume compared to a year ago, as well as a 89% increase in funds, as reported in the third quarter of 2024. The US marked the best IPO performance in this quarter since Q4 2021, with signs of a turnaround in Europe, which marked a six-fold increase in total funds raised from the previous quarter in 2025.
Dynamic markets are fuelling expansion policies worldwide
Enterprises reignited their enthusiasm for expansion strategies worldwide in 2025, with emerging markets as important contributors to growth owing to a rising youth population, substantial technology adoption, and rising expenditure. India maintained a 6.5% GDP with one of the fastest-growing major economies in the world, thanks to digitization. The nations comprising Southeast Asia, such as Indonesia, Vietnam, and the Philippines, received large amounts of investment due to enhanced manufacturing capabilities.
“We are now seeing a much more positive international environment for IPOs than has been seen in this challenging period. Market conditions are also steadily improving, with markets showing signs of a recovery,” said Fergal McAleavey, Corporate Finance Partner for Ireland, EY.
The confluence of economic stabilization, innovation in technology, and resumed globalization has brought companies opportunities for lasting expansion. Looking ahead to 2026, those companies that are adopting automation technology, developing sustainable technology, and expanding into emerging markets are set to lead in a new wave of globalization. The sharp increase in initial public offerings points to a return of corporate optimism to a threshold seen before the pandemic.
