Market Insights Financial Corporate Finance

Mergers and Acquisitions - Portugal

Portugal

The transaction value in the Mergers and Acquisitions market is projected to reach US$4.65bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 3.23% resulting in a projected total amount of US$4.80bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$113.10m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in Portugal is experiencing a shift towards increased activity and growth.

Customer preferences: Companies in Portugal are increasingly looking to M&A deals as a strategic tool to expand their market share, diversify their offerings, and gain a competitive edge in the industry. This trend is driven by a growing desire among businesses to enhance their capabilities and reach new customer segments through strategic acquisitions.

Trends in the market: One noticeable trend in the Portuguese M&A market is the rise in cross-border transactions, where both domestic and foreign companies are actively engaging in deals to capitalize on new opportunities and strengthen their global presence. Additionally, there is a noticeable uptick in the number of mergers and acquisitions within the technology and renewable energy sectors, reflecting Portugal's commitment to innovation and sustainability.

Local special circumstances: Portugal's strategic geographic location, stable political environment, and business-friendly regulations make it an attractive destination for M&A activities. The country's strong ties with other European markets and its access to skilled labor further contribute to its appeal for investors looking to pursue M&A deals in the region. Moreover, the government's efforts to promote foreign investment and entrepreneurship have created a conducive environment for M&A transactions to thrive.

Underlying macroeconomic factors: The recent economic stability and steady GDP growth in Portugal have instilled confidence in investors, leading to an increase in M&A deals across various sectors. Additionally, low-interest rates and favorable financing conditions have facilitated deal-making and encouraged companies to pursue strategic acquisitions as a means of driving growth and achieving economies of scale. Overall, the positive economic outlook and supportive business environment in Portugal are likely to sustain the momentum in the M&A market.

Methodology

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).

Additional Notes:

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