Recent Trends in M&A Activity Across Europe: What Businesses Need to Know in 2025

Mergers and acquisitions (M&A) remain a driving force in reshaping Europe’s business landscape in 2025. Despite ongoing economic uncertainties, geopolitical shifts, and evolving regulatory frameworks, deal activity continues to demonstrate resilience, fueled by strategic growth ambitions and market consolidation across key industries.

Sustained Deal Volume and Rising Values

Recent data indicates that European M&A deal volumes have maintained a steady pace, with a notable uptick in cross-border transactions. Deal values are growing, particularly in sectors such as technology, healthcare, and renewable energy. Companies are leveraging acquisitions to accelerate digital transformation, access innovative healthcare solutions, and meet sustainability targets.

Strategic Sectors Leading the Way

• Technology: As digital transformation accelerates, tech companies dominate deal flow, with investors focusing on software, AI, and cybersecurity firms.

• Healthcare & Life Sciences: Innovation and increasing demand drive M&A activity in pharmaceuticals, biotech, and medical devices.

• Renewable Energy & Sustainability: Energy transition policies propel investments and consolidation in renewables, clean tech, and sustainable infrastructure.

  
  

Private Equity’s Expanding Role

Private equity (PE) firms are increasingly active in Europe, particularly in the mid-market segment. PE investors bring capital, operational expertise, and strategic focus, making them key players in competitive auctions and complex deal structures. Their involvement is reshaping the M&A environment, raising deal multiples but also enhancing post-deal value creation.

Navigating the Regulatory Landscape

Heightened regulatory scrutiny, especially in technology and infrastructure sectors, is shaping deal-making processes. European regulators emphasize competition law and national security, requiring thorough due diligence and careful deal structuring. Awareness of these evolving regulations is critical for deal success.

What This Means for Your Business

If you are considering M&A in Europe, preparation is essential:

• Clear Strategic Objectives: Define your goals and align your deal strategy accordingly.

• Robust Due Diligence: Assess financial, legal, and operational risks comprehensively.

• Cross-Border Expertise: Understand local market dynamics, tax implications, and cultural factors.

• Focus on Long-Term Value: Prioritize deals that deliver sustainable competitive advantages.

How Prime Horizon Advisory Supports Your M&A Journey

At Prime Horizon Advisory, we specialize in guiding businesses across Europe and the Adria region through every stage of M&A transactions. Our services include target identification, valuation, deal structuring, negotiation, due diligence coordination, and post-merger integration support. Leveraging deep market insight and a hands-on approach, we help you unlock maximum value while minimizing risks.

Ready to explore how M&A can accelerate your business growth?

Contact us today to schedule a complimentary strategy consultation.