Mergers and Acquisitions - Europe

The transaction value in the Mergers and Acquisitions market is projected to reach US$665.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -12.63% resulting in a projected total amount of US$581.60bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$210.90m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached United States (US$1.36tn in 2024).

Definition:

The Mergers and Acquisitions (M&A) market involves the buying, selling, combining, and/or restructuring of companies. It encompasses transactions where one entity acquires another, or two entities merge to form a new company. M&A activities are driven by strategic objectives such as expanding market presence, diversification, or achieving operational efficiencies. Investment banks play a crucial role in the M&A market by providing advisory services to companies engaged in these transactions. They offer expertise in valuation, due diligence, deal structuring, and negotiation, ultimately aiming to enhance shareholder value and drive corporate growth.

Structure:

The market contains the following KPIs: transaction value, number of transactions, and the average transaction size.

Additional information:

Only transactions that are valued above US$100,000 are considered in this analysis.

Deals valued over $100,000
Whole Company (incl. Majority Stake) Acquisitions
Minority Stake Acquisitions
Asset or Branch Acquisitions
Spinoff or Splitoff
Bankruptcy Sales

Private Equity Deals
Venture Capital Deals

The emphasis on sustainability, rigorous risk management, and seamless integration of digital technologies in the Mergers and Acquisitions market signifies a thriving environment for deals. This strategic orientation, coupled with adeptness in global policies, staying vigilant about geopolitical shifts, and skillfully managing currency risks, lays a solid foundation for a surge in both the quantity and magnitude of successful M&A transactions.

Trends on the market:

Sustainability and ESG Focus: The Mergers and Acquisitions market is significantly influenced by a growing emphasis on sustainability and ESG (Environmental, Social, and Governance) factors. Companies pursuing M&A opportunities are increasingly considering the alignment of target firms with sustainable business practices.
Volatility and Risk Management: Persistent market volatility continues to shape the Global Mergers and Acquisitions landscape. Uncertainties stemming from geopolitical events and economic fluctuations necessitate rigorous risk assessment and mitigation strategies. Due diligence and robust risk management frameworks are paramount for successful M&A transactions.
Digitization and Technology Adoption: The integration of digital technologies remains a prominent driver in the M&A space. Firms leveraging advanced analytics, data-driven insights, and innovative deal-making platforms are poised to enhance transaction efficiency and maximize value creation.

Underlying Indicators:

Global Policies: The evolving landscape of global policies continues to have a significant impact on M&A activities. Regulatory changes, trade agreements, and tax reforms directly influence deal structures and cross-border transactions. Adapting to these shifts is crucial for executing successful mergers and acquisitions.
Geopolitical Events: Geopolitical events remain a critical factor in M&A decision-making. Shifts in trade dynamics, political instability, and regional conflicts can introduce unforeseen risks and opportunities. A comprehensive understanding of geopolitical nuances is essential for navigating the M&A landscape effectively.
Exchange Rates: Exchange rate fluctuations continue to be a pivotal consideration in cross-border M&A transactions. Variations in currency valuations can impact deal valuations and financing costs. Implementing sound currency risk management strategies is imperative for mitigating potential adverse effects on transaction outcomes.

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). The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional Notes:

The market is updated twice per year in the event that market dynamics change.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Investment banks provide important services for companies, governments, and other institutions, with the purpose of acting as a mediator between the parties included. Most of the largest investment banks globally, also known as “bulge bracket banks”, are full-service banks, providing a wider range of services to clients in addition to underwriting and advisory services, such as sales and trading, research, and asset management services. The investment bankers are compensated for their services through fees, which can take various forms depending on the agreement, but is usually made up by a cash fee paid when the deal has been completed, a fixed monthly fee, a success fee as a share of the deal value, or a combination of these fee types.

Mergers and acquisitions have become integral to corporate growth, with deal activity consistently showing robust numbers even amidst global economic uncertainty. Companies are increasingly looking beyond organic growth, seeking acquisitions or mergers to gain access to new markets, diversify their portfolios, achieve synergies, or enhance technological capabilities. The value of global M&A deals worldwide amounted to 2.5 trillion U.S. dollars in 2023, with the United States being the most dynamic market and accounting for more than half of the total. China's M&A activity, while tempered by regulatory scrutiny and geopolitical tensions, has grown significantly: Chinese firms have been targeting sectors such as technology and healthcare, both domestically and internationally, to support their economic growth. Emerging markets such as India and Brazil have also become attractive M&A destinations, particularly in sectors like consumer goods, technology, and energy.

An initial public offering, also known as an IPO or a stock market launch, is a pivotal step in the journey of a company. It refers to the debut of a company's stock on a stock exchange and allows external investors to buy shares in the company. Going public can yield high returns for the company itself and its investors, but it can also be a gamble. In fact, the equity returns of IPOs were twice as large as those from NASDAQ investments or even SPAC mergers in 2020, but returns were negative in 2021. Additionally, the share of companies that are profitable post-IPO has fallen in recent years.

IPO activity in the United States has seen dramatic fluctuations in recent years. The peak in 2021 set a record, with approximately 135 billion U.S. dollars raised due to a surge in tech companies and Special Purpose Acquisition Companies (SPACs) going public. However, this rapid growth was followed by a stark downturn in 2022 and 2023, which led countries like China and India to emerge as the leading IPO market, despite the U.S. being home to the largest stock exchanges worldwide in terms of market capitalization. The New York Stock Exchange (NYSE) and the Nasdaq Stock Market are also the most popular exchanges for international companies, having the highest number of foreign firms listed.

Mergers and Acquisitions - Europe

Transaction Value

Number of Transactions

Average Transaction Size

Analyst Opinion

Methodology

Financial

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Key Market Indicators

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Mergers and acquisitions (M&As) worldwide - statistics & facts

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IPOs globally - statistics & facts

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IPOs in the U.S. - statistics & facts

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Mergers and Acquisitions - Europe

In-Scope

Out-Of-Scope

Corporate Finance

Related markets:

Merges and Acquisitions: market data & analysis

Transaction Value

Number of Transactions

Average Transaction Size

Analyst Opinion

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Investment banking - statistics & facts

Explore more high-quality data on related topic

Mergers and acquisitions (M&As) worldwide - statistics & facts

Explore more high-quality data on related topic

IPOs globally - statistics & facts

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IPOs in the U.S. - statistics & facts