Markets, M&A and the Architecture of Corporate Growth

Global finance closes 2025 on a constructive footing. Liquidity remains abundant, equity valuations hold near record levels and monetary policy in advanced economies favours growth. Switzerland, Western Europe and the United States share a cycle defined by stable inflation and resilient earnings. For corporate leaders, the agenda centres on converting financial liquidity into strategic growth through disciplined mergers, acquisitions and innovative capital structures.

The International Monetary Fund estimates global GDP expansion at 2.9 per cent in 2025, supported by consumption strength in the United States and industrial recovery in Europe¹. Inflation converges near central-bank objectives—2.4 per cent in the Eurozone, 2.7 per cent in the United Kingdom and 2.8 per cent in the United States². Bond yields adjust accordingly: ten-year Treasuries trade near 4 per cent, Bunds 2.6 per cent and Gilts 4.4 per cent³. These levels sustain equity valuations while lowering financing costs.

In equity markets, performance reflects genuine earnings power. FactSet reports that 73 per cent of S&P 500 companies exceeded profit expectations in the third quarter, with aggregate earnings growth at 11 per cent⁴. Swiss and Western European corporates maintain robust cash positions and modest leverage, typically under 1 × EBITDA, providing flexibility for acquisition financing. Currency conditions reinforce this trend: the Swiss franc strengthens against the euro while remaining stable versus the dollar, a configuration that supports outbound investment.