The M&A market is reshuffling amid a battle over deal terms.

With the Trump administration's sudden announcement in early April to impose comprehensive tariffs,RMB-USD exchange rate the global mergers and acquisitions market has plunged into an unexpected "stress test." Amidst intense financial market turbulence, deals from Silicon Valley to Milan are being forced to reevaluate and renegotiate terms, accelerating a global restructuring concerning valuations, terms, and liquidity.

A quiet wave of restructuring M&A terms, capital seeks self-preservation in political whirlpools

Data shows that in the first half of April 2025, the total value of global M&A transactions plunged by 29% year-on-year, marking the worst record since 2020. Analysts believe that political uncertainty and financial market volatility are squeezing the operational space of capital from both sides.

Against this backdrop, a silent “terms revolution” has emerged on the negotiation table for mergers and acquisitions. For example, Global Payments was scheduled to complete a three-party merger worth up to $24.3 billion in early April. However, just as the deal was about to close, the company’s stock price fell 15% due to a market crash, forcing the parties involved to temporarily adjust the valuation system and ultimately choose the pre-tariff announcement price of $97 as the pricing benchmark instead of the real-time price. Such "historical reference pricing" strategies have become a typical hedging approach during turbulent times.

On another front, Silver Lake Capital and Intel made innovative adjustments to the payment structure in their $4.46 billion acquisition of Altera, splitting the transaction into three phases and deferring the last $1 billion until 2027. This move not only preserved the financial returns of the deal but also reduced short-term payment risks.

As Deutsche Bank's Vice Chairman of M&A Heek noted: “We are once again witnessing the complex appendage clauses that only emerged during the 2008 financial crisis.”

Marked deal differentiation, strategic acquisitions advance against the trend

Despite increasing market volatility, some deals with strong strategic components and clear long-term value are advancing against the trend. Italian luxury brands Prada and Versace are a typical example. The two companies began negotiations in November 2024 and successfully signed a $1.38 billion acquisition agreement on the 10th of this month. Industry insiders pointed out, “True strategic transactions are not easily swayed by short-term market sentiment.”

However, such transactions are becoming rare. More deals are undergoing financing structure rewriting and valuation reconstruction. When acquiring UK’s esure, multinational insurance company Ageas not only designed multi-version scenario simulations but also provided multiple loan plans to "reinforce valuation." Market data indicates that about 30% of active transactions are currently undergoing financing terms redesign, which makes deal structures increasingly complex.

Heightened risk aversion, gold and safe-haven currencies benefit

Analysts believe that political risks are profoundly changing asset allocation logic. As the tariff dispute escalates, the fear index VIX may rise further, speculative capital is starting to withdraw from high-risk assets, shifting instead to defensive sectors such as healthcare and utilities.

Meanwhile, the status of the US dollar is facing a dual challenge — on one hand, the independence of the Federal Reserve is questioned due to presidential interference; on the other, the capital market fears long-term capital outflows caused by uncertainty in US macroeconomic policy. If this trend continues, safe-haven currencies like the yen and euro may become alternative choices, and the hedging value of gold will be further activated.

The logic of capital survival behind the terms revolution

As valuation fluctuations meet political interference, the global M&A market is undergoing a structural transformation. Flexible pricing mechanisms, innovative payment models, and dynamic financing strategies are becoming the new norm. In a global economic environment dominated by uncertainty, only those capital players who adapt to change and master the art of negotiation can stand out in an era of rewritten rules.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.