6 trends driving M&A in Europe

What trends are shaping the current M&A landscape in Europe? We’ve identified six key trends driving change across the market.

?? Trend #1: Regional variability in M&A growth

M&A growth varies widely across Europe. The UK has surged with a 131% increase in deal value, its highest share since 2015. Sweden (up 111%), the Czech Republic (up 68%), and France (up 29%) also saw gains, driven by large transactions. In contrast, Germany saw a 52% decline, with Austria, Switzerland, and Italy also slowing down. This variability reflects different economic conditions and market dynamics across Europe.

?? Trend #2: Mid-market deals on the rise

Large-scale deals are less common, as companies focus on smaller, mid-market transactions that are easier to finance and less exposed to volatility. This trend is especially prominent in tech, life sciences, and media, allowing businesses to grow while managing risk.

?? Trend #3: Private equity fuels sector-specific investments

Private equity (PE) firms, with ample “dry powder” ready to invest, are increasingly targeting specific sectors through strategic carve-outs, joint ventures, and acquisitions. Lower market valuations make this a prime time for PE investments, particularly in high-growth industries where they can maximise returns.

?? Trend #4: Emphasis on data security and compliance

Data security is critical as M&A transactions become more data-intensive. Europe’s stringent GDPR and new ESG standards are driving companies to prioritise data protection and sustainability. Platforms like Drooms offer AI-driven secure data rooms, making compliance easier and helping businesses meet complex regulatory requirements.

?? Trend #5: Digital transformation and AI streamlining deals

Technology is accelerating M&A processes, especially with AI-driven platforms that simplify due diligence, speed up analysis, and reduce errors. Virtual data rooms centralise information securely, helping teams move faster and more efficiently.

?? Trend #6: Communication as a key to M&A success

Efficient communication is essential but remains a challenge in M&A. Traditional tools like Slack or Teams don’t always meet the security standards needed for sensitive deals. Drooms Chat, the first secure messenger built specifically for M&A, enables confidential communication on a centralised platform, reducing risks associated with scattered, multi-tool communication.

Curious to dive deeper into these trends shaping European M&A in 2024? Discover how companies are adapting to the shifting landscape and leveraging technology to drive success. Read the full blog post here: https://drooms.com/ma-trends-2024-rebound-and-varied-growth-across-europe/?utm_source=organicsocial&utm_medium=newsletter&utm_campaign=mna