Market Insights Financial Corporate Finance

Mergers and Acquisitions - Israel

Israel

The transaction value in the Mergers and Acquisitions market is projected to reach €11.08bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -7.76% resulting in a projected total amount of €10.22bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to €120.40m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (€1,260.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in Israel is experiencing a significant uptick in activity.

Customer preferences: Companies in Israel are increasingly looking to M&A deals as a strategic way to expand their market share, acquire new technologies, and gain a competitive edge in the global market. This trend is driven by a desire for growth and innovation, as well as a need to adapt to rapidly changing market conditions.

Trends in the market: One noticeable trend in the Israeli M&A market is the rise of tech acquisitions. Israel has a vibrant tech ecosystem, often referred to as "Startup Nation," with a high concentration of innovative startups in areas such as cybersecurity, artificial intelligence, and biotech. As a result, both local and international companies are actively seeking M&A opportunities to tap into this pool of talent and cutting-edge technology.

Local special circumstances: Israel's geopolitical situation and its strong ties with the United States also play a significant role in shaping the M&A landscape. The country's strategic location, coupled with a business-friendly environment and a culture that values entrepreneurship, make it an attractive destination for foreign investors looking to enter the Middle East market or gain access to Israeli innovation.

Underlying macroeconomic factors: Moreover, Israel's robust economy, characterized by steady GDP growth and a well-developed financial sector, provides a solid foundation for M&A activity. The government's supportive policies towards foreign investment and innovation further contribute to the overall positive sentiment in the market. Additionally, the presence of experienced legal and financial advisors specialized in M&A transactions facilitates deal-making and ensures smooth execution of transactions.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.