European M&A and PE market Q1 results

| Insights

Data collected from Andersen’s European M&A professionals show solid deal growth, with increased interest in medium to large transactions and a strategic focus on digitization, sustainability, and industrial consolidation.

The first quarter of 2025 confirms the robustness of the European mergers and acquisitions (M&A) and private equity (PE) market, despite a still complex macroeconomic environment. Amid inflation, geopolitical uncertainties, and an evolving monetary framework, key market players continue to seek selected investment opportunities, keeping interest high in the most high-potential sectors.

Germany and the UK lead deal activity in Europe

Germany led the private equity market in terms of deal value, with a total transaction volume of €5.33 billion across 201 deals, consolidating its position as a market leader. The United Kingdom stood out for the number of deals closed—333 in total—with a nearly equivalent transaction value (€5.25 billion). France, Sweden, and Ireland complete the upper ranks with deal values exceeding €1.5 billion.

These figures confirm the strength of the main European markets, which remain attractive to investors due to robust economic infrastructure, availability of strategic assets, and growing clarity regarding upcoming monetary policies.

Italy in Q1 2025: energy sector among the key investment drivers

In Q1 2025, Italy emerged as one of the countries garnering increasing investor interest, particularly due to the growth of the energy sector in private equity deals. While not among the top markets by volume, Italy recorded a significant deal value in the energy sector (€173.76 million), confirming the rising interest in operations tied to ecological transition, energy efficiency, and renewable infrastructure.

These results align with a broader trend where Southern Europe—and Italy in particular—attracts capital thanks to post-pandemic recovery plans, EU funding, and decarbonization policies.

Technology, healthcare, and industry drive key sectors across Europe

Among the most dynamic sectors in the first four months of 2025, technology once again leads in both value and number of transactions: €6.77 billion across 565 deals. The sector continues to attract capital due to its scalable potential and growing interest in digital business models, particularly in areas such as AI, cybersecurity, cloud infrastructure, and SaaS.

Other notable sectors include:

  • Finance: €3.62 billion across 34 deals, characterized by large average deal size and a focus on structured operators.

  • Healthcare: €3.57 billion over 165 transactions, reflecting widespread interest in med-tech, biotech, and healthcare services.

  • Industrial/Engineering: €2.75 billion across 213 deals, confirming ongoing interest in advanced mechanics, automation, and industrial logistics.

  • Consumer Goods: €2.97 billion for 91 deals, a significant figure reflecting a recovery in consumer spending.

Emerging trends and outlook for 2025

The attached report also highlights several key trends expected to shape the market in the coming months:

  • Selective growth in emerging European markets (Poland, Romania, Czech Republic) driven by production relocation, EU funding, and strategic geographic positioning.

  • Recovery of cross-border operations, supported by improved financing conditions and increased regulatory clarity.

  • Deeper ESG integration in M&A and PE strategies, also driven by the new Corporate Sustainability Reporting Directive (CSRD).

  • Return of large-scale deals, especially in energy, infrastructure, and telecommunications.

  • Focus on industrial resilience, with growing interest in companies managing critical supply chains or offering enabling technologies.

It can be concluded that the first quarter of 2025 marks a turning point for the European M&A market, with renewed investor confidence and increasing selectivity. Italy, while maintaining a mid-sized profile, stands out for its contributions from the energy sector and for providing a favorable environment for targeted and sustainable deals.

In a scenario requiring strategic vision and careful asset selection, Andersen professionals are trusted partners in supporting domestic and international clients through investment and growth processes.

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