Dutch M&A market shows promising signs for continued rebound in 2025

The Dutch M&A market is heading into 2025 showing promising signs of a rebound. Despite facing challenges in dealmaking throughout 2024, the M&A landscape in the Netherlands has proven to be resilient. The M&A Market Review report from Oaklins, an international corporate finance house, indicates that both strategic buyers and financial sponsors are expected to increase their activity in 2025.

Beginning the year slowly, the Dutch M&A market witnessed a surge in deal activity during the third and fourth quarters of 2024, resulting in a total of approximately 1,045 transactions for the year, similar to the previous year’s figures. Factors like high interest rates, inflated sell-side valuations, geopolitical uncertainty, and buyer caution contributed to a sluggish appetite for deals at the onset of the year.

However, Tijn Bastiaans, Partner and Head of the Private Equity team at Oaklins, notes that the sector demonstrated a strong recovery in the latter part of 2024, leading to a performance that was relatively on par with 2023, with a slight 3% year-over-year decrease in deal volume. This highlights the resilience of the M&A activity in the Netherlands despite the challenging conditions.

The analysis revealed a rebound in activity among both strategic buyers and financial sponsors. Strategic deals saw a record total of 244 closings in Q4, the highest quarterly figure in the past three years. Additionally, financial sponsors’ involvement in deals surged by 30% in the second half of 2024, following a decline in the first six months. This trend reflects the renewed confidence among buyers, and the average deal value also saw an increase in the second half of the year.

Among the key players in the Dutch private equity space, Main Capital led the pack with 16 deals in 2024, followed by Waterland Private Equity and OxGreenfield with 9 and 7 deals, respectively. Main Capital and Waterland Private Equity notably achieved three successful major exits each over the last year.

Looking forward to 2025, the Oaklins report anticipates that the late rally of 2024 will carry into this year, buoyed by stabilizing financing markets and improving economic conditions. Companies are exploring inorganic moves to enhance their competitiveness, enter new markets, and strengthen their capabilities. Private equity involvement in acquisitions and exits is expected to rise, driven by realistic valuations, a backlog of exits, and an improving economic climate.

In conclusion, the Dutch M&A market is poised for a more active year in 2025, with both strategic buyers and financial sponsors showing increased confidence and activity levels. As businesses adapt to the changing landscape, the M&A sector in the Netherlands is expected to see a robust rebound and continued growth in the coming months.