Bain & Company held a press seminar on 18 August to recommend strategies for Japanese companies to use M&A in light of advances in AI technology and geopolitical risks. The seminar covered global and Japanese M&A trends, the current state of AI use, and proposed practical approaches.
Against a backdrop of advances in AI technology and rising geopolitical risks, Bain held a press seminar on 18 August to recommend approaches for Japanese companies to use M&A to strengthen their competitiveness.
The global M&A market recovered in 2025, up 40% year on year, and is expected to remain at a high level in 2026. Scope deals aimed at transforming portfolios, rather than expanding existing businesses, accounted for a record 60% of transactions. The total value of transactions in the Japanese market reached $230 billion.
AI is significantly transforming investment criteria and practical processes. Approximately 45% of large transactions valued at more than $500 million were said to be AI-related. Data presented at the seminar also showed that AI impact assessments have become essential in due diligence and that 27% of companies withdrew from deals over concerns about the risks.
As basic steps to take amid uncertainty, Bain recommended three measures: scrutinizing portfolios, strengthening screening and due diligence, and considering divestitures and spin-offs.
Overall, advances in the use of AI are improving the efficiency of M&A processes and creating an environment in which people can concentrate resources on more sophisticated decision-making.