In 2025, a Swiss life sciences company targeting a U.S. acquisition faces more than valuation debates, it must untangle new regulatory filings, overlapping tax regimes, and stricter cross-border data rules.
Global cross-border M&A deal volumes fell by roughly 17% in the first half of 2025, yet total deal value rose by around 30% (Q2 2025 M&A Trends). This reflects fewer but larger, higher-stakes transactions – the kind where a misstep on law, tax, or regulation can erase millions in value.
The Americas remain the largest market, but Switzerland–Europe–U.S. deal flows have been accelerating. Interest rates have stabilised, private credit is plentiful, and both corporates and private equity are active. In today’s market, winning the deal isn’t about finding the right target, it’s about navigating rules that change faster than term sheets.
Switzerland: Regulatory changes make EU capital markets more accessible for cross-border deals
Europe: Compliance demands in AI and data protection are increasing sharply
USA: Complex tax and FDI rules require early and proactive structuring strategies
Switzerland has entered 2025 with solid fundamentals: stable interest rates, abundant PE capital, and strong activity in technology, healthcare, and life sciences.
A major shift took place on 1 May 2025, when Switzerland lifted restrictions on trading Swiss-listed shares on EU exchanges. This streamlined cross-border capital market access, enabling deals to be combined with dual listings or equity financings.
Key frameworks:
On the tax side, the OECD’s Pillar Two minimum corporate tax – in force since January 2024 – continues to affect only a handful of Swiss multinationals, but it has set a precedent for global tax alignment. Deal teams are reviewing how it interacts with transfer pricing and deal structures.
Example: In Q2 2025, a Swiss medtech acquisition of a German target leveraged EU trading liberalisation to issue equity across both markets, reducing financing costs by ~8% compared to a purely Swiss structure.
Current challenges:
Practical takeaways:
So far in 2025, M&A activity across Europe has been muted, with deal volumes and values both down. Yet renewables, technology, and specialist manufacturing continue to offer selective growth opportunities (From Leverage to Leadership).
One headline theme is European banking consolidation. Despite record 2024 profits and U.S. competition, large-scale mergers remain rare due to regulatory fragmentation and the absence of a full banking union.
Market access & compliance:
Example: In late 2024, a mobility software acquisition stalled for four months when AI Act readiness checks revealed compliance gaps in algorithm transparency – a challenge acquirers are now addressing pre-LOI.
Practical takeaways:
The U.S. remains the world’s largest M&A market, with deal values climbing even as volumes have softened. Technology, infrastructure, life sciences, and industrial products continue to attract strong inbound interest.
For foreign acquirers, however, the U.S. environment is increasingly complex:
Example: In early 2025, a Swiss–U.S. industrial merger reduced its headline price by 5% to offset potential tariff costs after new U.S. trade proposals targeted machinery imports.
Practical takeaways:
Cross-border M&A in 2025 offers substantial upside, but only for dealmakers who can master the interplay of law, regulation, and tax across multiple jurisdictions.
“In 2025, the success of cross-border M&A will be defined less by the size of the opportunity and more by the ability to navigate complex, shifting frameworks in multiple jurisdictions. Our clients who integrate legal, regulatory, and tax considerations from day one are best placed to capture value.” – Ron Spicker, Head of Iberia
At P4i, we work with corporates and private equity investors to anticipate regulatory hurdles, optimise tax efficiency, and design resilient structures that protect and grow deal value in today’s volatile global market.