The Role of Data Management in Mergers and Acquisitions

The outlook for mergers and acquisitions (M&A) in 2025 is positive, with favorable market conditions and regulatory changes expected to drive increased deal-making activity. In this environment, private funds should look at their data management practices to ensure they benefit from any boom.

To help organizations make the most of this environment, Kyriba’s SVP of Product Solutions & Strategy Thomas Gavaghan highlighted how several factors are converging to create a strong environment for M&A activity, including increased liquidity, regulatory shifts, and technological advancements.

Market Conditions Favor M&A Growth

Corporate liquidity in the U.S. has reached $3.5 trillion—the highest level since 2021—representing a 20% liquidity-to-revenue ratio for companies with combined revenues of $16 trillion. Despite this liquidity, M&A volumes remain lower than pre-pandemic levels, with approximately 2,000 fewer deals being completed. This reflects a cautious “wait and see” attitude among corporations, largely driven by economic uncertainty and interest rate instability.

However, with the U.S. Federal Reserve signaling potential interest rate cuts and a more business-friendly regulatory climate expected under a second Trump administration, corporations are poised to shift from hoarding cash to deploying it in strategic acquisitions. Gavaghan predicts that M&A activity will return to pre-COVID levels as companies seek to grow and strengthen market positioning through acquisitions.

Challenges and Regulatory Pressures

While the overall regulatory environment may loosen, new challenges are emerging in the form of anti-money laundering (AML) reforms, environmental, social, and governance (ESG) requirements, and shifting trade policies. The potential for increased tariffs could push companies to regionalize supply chains through domestic acquisitions, aiming for greater control over production and logistics.

Gavaghan believes these evolving dynamics mean that private funds and corporate buyers will need to navigate a complex mix of regulatory compliance, geopolitical risks, and competitive pressures while executing M&A deals.

The Role of Data in Successful M&A

Effective data management will be critical for private funds and corporations looking to capitalize on M&A opportunities. According to Gavaghan, one of the key priorities for General Partners (GPs) is achieving complete visibility of liquidity. This includes knowing the location and availability of cash, understanding credit facilities, and aligning capital calls and debt management with investment strategies.

Centralized data is essential for managing this complexity. Many firms still rely on fragmented systems and manual processes, which create bottlenecks and increase the risk of errors. Transitioning to a centralized platform where all liquidity and investment data is accessible in real-time is key to improving decision-making and increasing deal velocity.

AI and Automation to Enhance Data Insights

AI and machine learning will play a growing role in transforming M&A decision-making. Gavaghan emphasizes that data centralization will enable AI to generate predictive insights, helping firms anticipate market trends and identify attractive acquisition targets. Generative AI, in particular, could provide more nuanced analysis of market conditions and deal structures, helping firms act with greater speed and accuracy.

Private funds must also integrate data from their portfolio companies into a centralized hub. This allows GPs to evaluate performance, risks, and growth opportunities holistically—enhancing strategic alignment and improving post-acquisition value creation.

What This Means for SAPinsiders

Understand the environment. The M&A market in 2025 is expected to rebound, driven by abundant liquidity, favorable regulatory conditions, and technological advancements. Firms that centralize data, enhance liquidity visibility, and leverage AI-driven insights will be well-positioned to capitalize on these opportunities. Successful M&A execution will require a combination of strategic foresight, technological capability, and operational agility—making data centralization and intelligent automation essential tools for competitive advantage.

Understand your organization to prepare for the M&A surge. To prepare for increased M&A activity, private funds and corporations should conduct an IT audit to evaluate the strength of their data infrastructure. They must know if their technology stack supports real-time data visibility, if it can integrate with other platforms and if their existing systems are agile enough to respond quickly to market opportunities. Speed and accuracy in M&A transactions depend on seamless data access and integration. Firms with fragmented systems will struggle to compete in a fast-moving market where decision-making timelines are compressed.

Understand the advanced options to bolster capabilities. Organizations should be aware of advanced capabilities like AI and automation to improve their decision-making. Analytics-driven insights can help companies identify opportunities faster, then act with greater speed and precision.