Pittsburgh Deal activity, August 2025: The growing role of AI in M&A transactions

Artificial intelligence (AI) is reshaping the M&A landscape, improving execution speed, accuracy and analytical depth. As dealmaking becomes increasingly complex and data-intensive, AI’s adoption is accelerating across due diligence, valuation, target identification and post-merger integration.

In diligence, AI tools are enhancing document review, risk identification and contract analysis. Natural language processing allows large volumes of legal, operational and financial data to be processed in a fraction of the time required by traditional methods. This efficiency reduces both deal timelines and the likelihood of oversight.

For target screening and valuation, machine learning models are enabling faster analysis of vast market data sets, identifying patterns that may not be visible through conventional financial modeling. Private equity firms and strategic acquirers are leveraging these insights to refine pipeline development and assess synergies with greater precision.

AI is also playing a critical role in post-merger integration. Predictive analytics help anticipate integration challenges, model workforce attrition and optimize go-forward organizational structures. This foresight contributes to improved value capture and smoother transitions post-close.

Despite its utility, AI is not a substitute for strategic judgment. Limitations in data quality, explainability and context awareness necessitate human oversight. This is particularly relevant for smaller-sized deals with less sophisticated systems and lower transaction volumes from which to perform analysis and form conclusions.

Effective application of AI on deals is not a one-size fits all approach, with thoughtful deal-specific strategy required. Successful implementation also requires coordination between deal teams, technology providers and functional stakeholders.

As AI tools continue to mature, their impact on M&A efficiency and competitiveness will likely expand. Firms that adopt and adapt effectively will be positioned to drive better outcomes across the transaction lifecycle.

M&A Market Activity

U.S. deal volume in June 2025 rose by 1.9 percent as compared to June of the prior year, but YTD volume still lagged behind the prior YTD period by 2.6 percent. Conversely, deal value in H1 2025 outperformed the prior year by 12.5 percent. An increase in mega-deals, by both strategic and PE-backed platforms, drove the increase in deal value, with a large amount of the enterprise value related to AI and tech-focused acquisitions.

The Pittsburgh M&A market experienced a pickup in June deal activity, as compared to both the prior month and prior year, bringing YTD activity level with the prior year. Transactions during the period were largely strategic in nature and included acquisitions by Xpressbet, EdgeCo Holdings, Aquatech International, Net Health Systems, and EPS US, as well as exits by Quest Analytics, ATS Systems, Pittsburgh Public Safety Supply, Inc., and an divestiture of GetGo by Giant Eagle.

Deal of the Month

On June 18, 2025, United States Steel Corporation (U.S. Steel) completed its sale to Nippon Steel. Originally announced in 2023, the deal underwent intense regulatory and political scrutiny before being approved in Q2 2023.

Together, Nippon Steel and U. S. Steel will be a world-leading steelmaker, with best-in-class technologies and manufacturing capabilities. The partnership will protect and create more than 100,000 jobs through unprecedented massive investments in steelmaking in the United States that will be unleashed across U. S. Steel’s footprints, including in Pennsylvania, Indiana, Arkansas, Minnesota and Alabama. This partnership ensures that U. S. Steel will retain its iconic name and headquarters in Pittsburgh, Pennsylvania, and that it will continue to be Mined, Melted, and Made in America for generations to come.

S. Steel’s CEO Dave Burritt stated: “This is a momentous day for our country, our communities, and the American steel industry. U. S. Steel will remain rooted in the United States and continue to call Pittsburgh home. Through our partnership with Nippon Steel, we are poised to grow better and bigger, with transformative investment, cutting-edge technology, and the creation of good-paying jobs across the United States.”

Sources: PitchBook, S&P Capital IQ, company websites, and public company filings.

Daniel M. Bowman is a Director and Principal at MelCap Partners LLC, a middle-market investment banking advisory firm. For more information on MelCap Partners, please visit www.melcap.com or email [email protected].

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}