2025: A Look at What’s Ahead in Capital Markets, Regulatory Compliance, and Cybersecurity Series
Shaped by a new presidential administration, economic shifts, and technological advancements, 2025 marks a transformative year, with significant changes expected across mergers and acquisitions (M&A), IPO activity, regulatory compliance, and cybersecurity. As companies face the demands of a dynamic marketplace, those leveraging emerging technologies like AI will be better positioned to navigate and prepare for the complexities of the evolving capital markets landscape.
In this three-part blog post series on what’s ahead for 2025, DFIN’s Craig Clay, President of Global Capital Markets, and Dannie Combs, Senior Vice President and Chief Information Security Officer, dive into the year's most pivotal trends and challenges. From addressing the capital market landscape to regulatory mandates to mitigating escalating cybersecurity risks, their insights and predictions will shed light on how companies can best adapt, build resilience, and seize opportunities in the year ahead.
Now that there is more clarity following the Presidential election, how do you see the M&A and IPO markets shaping up in 2025? Are you optimistic about growth, and what factors are driving your perspective?
Craig Clay: I’m optimistic about growth in the M&A and IPO markets in 2025. There’s a strong appetite for deal-making, with companies positioning themselves for the next phase of economic expansion. The stabilization of interest rates is creating a more predictable financing environment, and sectors like technology, healthcare, and clean energy are driving innovation and opportunities. Additionally, many companies are sitting on significant cash reserves, thanks to the success of their products, and are actively seeking to expand their pipelines and scale their operations. Private equity firms are feeling the pressure to put dry powder to work and finally exit their investments after extended holding periods. We’ve seen PE-backed companies deliver strong stock performances following their IPOs, which will likely lead to an increase in PE-backed offerings in 2025.
With a new administration in place, companies have more clarity as to how the market and regulators will act and can move forward accordingly. Companies have also been waiting on the sidelines for years, carefully preparing for an IPO, and are now poised to take action.
That said, challenges like inflation, cybersecurity risks, and geopolitical tensions remain critical considerations. To navigate these complexities, clients are increasingly leveraging digital tools and expertise to enhance efficiency, improve data analysis, and maintain compliance with evolving regulations.
As companies ready themselves for the next wave of M&A activity, the ability to act quickly and demonstrate real value to shareholders will be pivotal. Collaborative technologies are expediting deal-making, while CFOs are ensuring their organizations remain agile and ready to seize opportunities. Despite the challenges, the momentum we’re seeing across industries reflects a shared optimism for sustained growth and innovation in 2025.
What trends are you hearing from clients as they prepare for potential opportunities or challenges in capital markets in 2025?
Craig Clay: We are seeing companies approach 2025 with a focus on two key areas: readiness and resilience. Most have already embraced digital-first strategies to streamline due diligence, reporting, and disclosure processes, ensuring they can move quickly when opportunities arise. Clients are also closely tracking regulatory changes, particularly around disclosure and compliance, to stay ahead of evolving requirements and adapt to the demands of investors and regulators. There's also growing interest in sectors poised for transformation, especially AI-driven technologies, as companies align their strategies with what investors are prioritizing.
The emphasis on readiness extends to M&A activity as well. Again, with favorable interest rates and substantial cash reserves, many organizations are positioning themselves to act decisively and proactively. Collaborative technologies and streamlined processes enable faster, more effective deal-making, ensuring companies can capitalize on opportunities in a rapidly shifting market landscape.
Which industries or sectors do you anticipate leading M&A and IPO activity in 2025, and what makes them stand out in the current economic and regulatory landscape?
Craig Clay: In 2025 we’re seeing technology, healthcare, and energy take the lead in M&A and IPO activity. Technology remains at the forefront, again, driven by breakthroughs in AI, cybersecurity, and digital transformation, with companies using M&A to scale and consolidate expertise faster. Healthcare continues to stand out, fueled by innovations in biotech and personalized medicine, alongside growing investments in infrastructure post-pandemic. Energy is also drawing major investor interest, as sustainability and decarbonization become top global priorities. The largest energy listing in over a decade, Venture Global, raised $1.75 billion on January 24, 2025, and energy equipment and services provider, Flowco, launched earlier in the month, raising over $425 million. These sectors are not only pushing boundaries but are well-aligned with regulatory trends and long-term investor goals, making them prime targets for growth and investment.
How do you see AI helping companies go public?
Craig Clay: AI is intended to help people work smarter, not harder. There is a lot of data gathering, management and review that is a part of the IPO process. With the right tools, companies can streamline these activities, which will free up time for teams working on the S-1 and allow them to really focus on analyzing the data, crafting a strong investor narrative, and putting their company’s best foot forward.
We expect more companies will use AI for financial data analysis and to simulate different market scenarios, which may give companies a clearer and quicker path to a high valuation.
To succeed in this landscape, organizations must prioritize readiness and resilience. By staying ahead of market trends and leveraging collaborative technologies, organizations can build a stronger foundation for growth and innovation.
DFIN remains committed to providing the tools, insights, and expertise companies need to thrive in this dynamic environment. Stay tuned for Regulatory Insights for 2025: Navigating a Complex Compliance Landscape, part two of this three-part blog post series, where we’ll delve deeper into the regulatory landscape shaping the year ahead.
