AI-powered VDRs, M&A, and the CFO’s 2025 Playbook: Navigating Today's Deal Execution

Corporate finance leaders are entering 2025 with a renewed focus on efficiency as they navigate a shifting economic and regulatory landscape. Inflation remains a concern; tariffs may disrupt supply chains, and the new administration’s policies could reinvigorate M&A activity. In this environment, artificial intelligence and digital tools play a larger role in optimizing operations. One technology at the center of this transformation is the virtual data room (VDR), which streamlines deal execution and document management.

Next-gen VDRs are leaving legacy providers in the dust

The integration of AI into workflows is accelerating, with companies like ADP using generative AI to enhance sales processes and investor communications (Wall Street Journal, "From M&A to AI: How CFOs Are Mapping Out the Year Ahead," Jan. 2025). Similarly, AI-powered VDRs like RedlineDCS are changing how organizations manage transactions. By automating document review, organizing due diligence materials, and enabling secure collaboration, these platforms reduce legal costs and time-to-close for deals.

The global value of M&A activity in 2024 was $2.1 trillion. Although this figure is 3% higher than the one for 2023, it is below the ten-year average of $3.0 trillion. The number of deals continued to decline, falling to 32,000—down from 34,200 in 2023 and significantly below the record high of approximately 41,200 in 2021.

M&A activity is poised to gain momentum, fueled by expectations of lower interest rates and regulatory shifts. However, valuation gaps persist, as buyers and sellers struggle to align on pricing. With financing costs still elevated, efficiency in deal execution becomes a competitive advantage. RedlineDCS enables firms to move swiftly, providing structured workflows for NDAs, intelligent search capabilities, and seamless DocuSign integration.

The five largest announced deals of 2024 were:

• Canada-based Alimentation Couche-Tard’s $38.7 billion bid for Japanese retailer Seven & I Holdings

• Australian BHP Group’s bid for UK-based Anglo American, valued at $36.4 billion, which has since been withdrawn

• Capital One Financial Corporation’s merger with consumer lending services provider Discover Financial Services, valued at $35.3 billion

• Synopsys’s bid for simulation software publisher Ansys, valued at $32.5 billion

• Mars’s bid for breakfast cereal maker Kellanova, a fellow US firm, valued at $29.7 billion

Deals involving targets in North America had a total value of $1.2 trillion, an increase of approximately 1% versus 2023. The vast majority (worth $1.1 trillion) involved targets in the US, accounting for 52% of overall global M&A activity

Trade policy uncertainty adds another layer of complexity. As CFOs reevaluate supply-chain investments in response to potential tariffs, robust documentation and compliance tracking become essential. Virtual data rooms offer a centralized repository for contracts, supplier agreements, and regulatory filings, ensuring teams can quickly assess and adapt to policy changes.

The broader economy remains resilient, with strong labor market fundamentals and continued business formation. Yet, as companies position for growth, cost discipline remains paramount. “Doing more with the same, or doing more with less” is a recurring theme among finance leaders (WSJ, 2025). AI-powered VDRs align perfectly with this ethos, automating repetitive tasks and enabling teams to focus on strategic decision-making rather than document management.

DCS 1.5, next-gen VDR powered by secure gen-AI

As 2025 unfolds, the ability to execute deals efficiently, manage compliance risks, and harness AI for operational improvements will differentiate market leaders. Virtual data rooms, once a tool for storage, have become indispensable platforms for dealmaking in a complex financial landscape. RedlineDCS ensures that organizations keep pace with change and capitalize on it.

Written by John Thompson, 💙💛

Special thanks to Boston Consulting Group for participating content.