M&A in Europe: Outlook 2024-2025

Following a slow year in 2023, the European market for mergers and acquisitions (M&A) experienced a significant rebound in 2024. Key factors contributing to this recovery included stabilised interest rates, a decline in inflation, and increased investor confidence.

Sectors such as technology, e-commerce and renewable energies are particularly benefiting from increased transaction activity. This reflects their continued attractiveness to investors, explain the Ecovis experts.

Regional insights into M&A in Europe

The following regional perspectives highlight key markets where M&A trends offer valuable lessons for business strategies. This helps to understand their economic context and implications for stakeholders.

• The UK market has witnessed a surge in M&A deals as businesses aimed to finalise transactions ahead of anticipated tax policy changes in early 2025.
• Germany’s M&A landscape has faced challenges due to sluggish economic growth and concerns about competitiveness, prompting an increase in distressed sales.
• In Central and Eastern Europe, Poland emerged as an investment hotspot due to favourable economic performance and EU funding boosts. Similarly, Czech businesses accelerated transactions in anticipation of upcoming tax reforms.

If you have any questions about M&A, please feel free to contact us.

Jan Slaby, Partner, ECOVIS Corporate Finance, Prague, Czech Republic

Key trends shaping 2025

Looking ahead, several trends are expected to shape the European M&A market:

1. Technological investments and ESG initiatives: Companies are focusing on digital transformation and sustainability, leading to increased investment in innovative and environmentally conscious projects. Our company is committed to smart solutions that align with these trends, supporting sustainable growth for our clients.
2. Creative deal structuring: In response to ongoing economic uncertainties, buyers and sellers are adopting more flexible and risk-averse transaction frameworks.

The overall sentiment in the European M&A sector remains cautiously optimistic. As businesses continue to adapt to evolving economic and regulatory landscapes, 2025 is expected to bring further opportunities for growth and strategic partnerships.

For further information please contact:

Jan Slaby, Partner, ECOVIS Corporate Finance, Prague, Czech Republic
Email: jan.slaby@ecovis.cz