Market Insights Financial Corporate Finance

Mergers and Acquisitions - Southern Europe

Southern Europe

The transaction value in the Mergers and Acquisitions market is projected to reach €137.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -47.79% resulting in a projected total amount of €71.90bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to €200.30m 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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Región

Comparación de regiones

Moneda

Analyst Opinion

The Mergers and Acquisitions market in Southern Europe is witnessing a significant uptrend in activity, reflecting a dynamic business environment in the region.

Customer preferences: Companies in Southern Europe are increasingly looking to M&A deals to expand their market presence, diversify their product offerings, and gain a competitive edge in the global market. Customers prefer strategic acquisitions that can drive growth, enhance innovation, and create synergies that lead to increased market share and profitability.

Trends in the market: Spain, one of the key countries in Southern Europe, is experiencing a surge in M&A transactions across various sectors such as technology, renewable energy, and tourism. Spanish companies are actively engaging in cross-border acquisitions to strengthen their international footprint and capitalize on emerging market opportunities. Additionally, Italy is witnessing a trend of consolidation in the luxury goods sector, with established brands acquiring smaller niche players to expand their product portfolios and reach new customer segments.

Local special circumstances: Greece, another prominent country in Southern Europe, is navigating a unique M&A landscape characterized by a focus on privatization deals in sectors like infrastructure, energy, and banking. The government's efforts to attract foreign investment through privatization initiatives have led to an increase in M&A activity in Greece. Moreover, the hospitality industry in Portugal is seeing a wave of M&A deals driven by a growing tourism sector and the consolidation of hotel chains to cater to increasing visitor numbers.

Underlying macroeconomic factors: The recovering economy in Southern Europe, coupled with favorable financing conditions and low-interest rates, is creating a conducive environment for M&A transactions. Companies are capitalizing on the region's economic stability and growth prospects to pursue strategic acquisitions that offer long-term value and sustainability. Additionally, regulatory reforms aimed at improving business transparency and investor confidence are further fueling M&A activity in Southern Europe.

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.