Published by Forbes Business Council

After five years marked by global shocks from the Covid-19 pandemic to soaring interest rates and, most recently, tariff-driven trade volatility, investor confidence appears to be regaining momentum. As of mid-2025, global dealmaking is picking up again. Preliminary data shows M&A activity rose 17% year-over-year in North America and 26% globally in the first half of the year.

This renewed energy is translating into large-scale deals, some in the tens of billions of dollars, and reflects a broader sentiment shift: While uncertainty remains, the appetite for strategic acquisitions is back. But in this phase of the cycle, investors would do well to proceed with clarity. Whether re-entering after a pause or continuing to deploy capital, here are three key questions to ask before moving forward.

1. ‘Where can M&A build long-term resilience in a volatile market?’

One of the most prominent themes emerging in 2025 is the use of M&A as a tool to build competitive advantage in the face of long-term volatility. This includes consolidating sectors, strengthening supply chains and responding to evolving consumer behaviors.

Several high-profile transactions in the first half of the year illustrate this trend. In May, Charter and Cox announced a $34.5 billion merger in a significant telecom consolidation move. In cybersecurity, Proofpoint announced it would acquire European rival Hornetsecurity for more than $1 billion, both to expand its presence and to lay the groundwork for a potential IPO.

In Israel, Check Point Software announced plans to acquire fellow Israeli cybersecurity firm Veriti Cybersecurity for an estimated $100 million. As the Israeli startup ecosystem matures, we are seeing more domestic M&A activity, where one local company acquires another, rather than relying solely on U.S.-based buyers. These types of deals can often smooth integration and reflect a growing capacity within the local market to scale and consolidate successfully, underscoring the strength of the domestic ecosystem.

2. ‘Where are the short-term wins that also strengthen long-term positioning?’

With macroeconomic conditions still in flux, investors are looking for deals that deliver near-term gains while building long-term value. One clear example is cybersecurity, a sector that continues to grow quickly, driven by increasing threats and accelerated digital transformation. M&A activity here not only offers access to high-growth companies, but also strengthens organizational resilience.

AI-enabled cyber solutions are especially attractive. In June, F5 acquired security startup Fletch, known for its AI that helps detect threats and reduce alert fatigue. The deal illustrates how established companies are using acquisitions to bring next-generation capabilities in-house.

Valuations are also a factor. Like during past periods of uncertainty, such as the 2008 financial crisis or early Covid-19 years, some companies may be available at more attractive entry points. Investors with conviction may find opportunities to acquire strong technology at discounted prices. Conversely, founders navigating today’s rapid AI innovation cycle may be more open to selling earlier, before their products risk being leapfrogged by faster-moving technologies.

3. ‘Where do long-term wins align with generational goals?’

While market volatility has been the dominant concern in recent years, investors should also be looking ahead to the structural challenges that will define the next decade. This includes sectors such as climate tech, agritech and smart mobility, areas positioned to address global issues such as resource scarcity, population growth and sustainability.

These long-horizon sectors may not provide immediate returns, but for family offices and institutional investors with a generational view, they present opportunities to align financial objectives with impact and resilience.

This balance between near-term agility and long-term vision is something I’ve seen firsthand. Arieli Group’s 2024 acquisition of Elron Ventures reflected both a strategic alignment with future-forward sectors and a belief that patient capital can play a role in driving scalable, meaningful innovation.

Now may be the time for thoughtful M&A.

After several years marked by uncertainty, the return of large-scale M&A signals a market entering a more constructive phase. For investors, the opportunity now is to engage strategically: identifying deals that provide immediate value, strengthen competitive positioning and create exposure to long-term structural growth themes.

For those who stepped back in the first half of the year, this may be the right time to re-engage. The window for thoughtful M&A is opening and for those who ask the right questions, the next chapter in dealmaking could prove both lucrative and lasting.