Mergers and Acquisitions Trends and Forecast for 2025
Looking into 2025, the M&A landscape is set to be influenced by various factors on a global scale as well as in Ireland. It’s expected that several key drivers will shape the merger and acquisition trends in the coming year.
Reflecting on the period between 2023 and 2024, there was notable resilience in M&A activity within Ireland. Despite a global decrease in deal value and volume during this time, Ireland stood strong. This was particularly impressive given the challenging backdrop of rising interest rates, economic uncertainty, geopolitical tensions, and lower valuations.
While the M&A scene had a slow start in 2024, it picked up momentum in the third quarter. European M&A activity also saw recovery during this period, with an anticipated 20% increase in deal value year-on-year and an 11% rise in deal count. Notably, small to midmarket transactions were prevalent in Ireland in 2024, with sectors like technology/TMT, pharma/life sciences, professional/business services, and renewable energy seeing active deal-making.
Looking ahead to 2025, predicting outcomes can be tricky in the current environment. However, there is an expectation of a global M&A rebound fueled by economic stabilization, technological advancements, and a growing focus on sustainability. The conclusion of elections in the US, UK, and Ireland is expected to bring some certainty, although the impact of potential policy changes remains uncertain. On a positive note, private equity firms are currently well-capitalized, and the possibility of lower interest rates could reduce funding costs, potentially leading to increased deal-making activity.
In Ireland, the focus of M&A activity in 2025 is projected to center around technology, pharma, renewable energy, financial and business services, and midmarket deals. Private equity firms are likely to target the SME market, offering opportunities for collaboration and value creation. Ireland’s attractiveness as a European tech hub is expected to continue, with investments in AI, cybersecurity, and data security anticipated. Additionally, in line with global sustainability efforts, Irish companies in med-tech, clean-tech, pharma, and green energy sectors could become attractive targets for US and European firms looking to enter the Irish market.
For any inquiries regarding M&A or corporate transactions, reach out to Beauchamps Corporate, Commercial & M&A team.
