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Merger and acquisitions activity in Ireland proved remarkably robust during 2025 against a backdrop of global economic uncertainty and geopolitical turbulence. Ireland recorded 524 deals, a 3 per cent volume increase on 2024, even as global M&A activity hit a 20-year low in April following the USA’s “liberation day” tariff shock.
Ireland’s macroeconomic conditions also remained favourable, with the International Monetary Fund forecasting 9.1 per cent GDP growth for 2025, sustaining corporate confidence and investment appetite. A combination of structural and cyclical factors underpinned that strong performance.
The mid-market continued to be the engine of Irish M&A, accounting for 90 per cent of disclosed transactions and providing consistent deal flow even as overall large-cap activity moderated. Sectoral strength in energy and utilities, pharmaceuticals and biotech, and financial services collectively accounted for many of the year’s largest deals. Technology, media and telecoms activity also remained resilient in volume terms, even though overall deal values contracted.
Large-cap deals still featured, with 12 transactions worth €250 million or more, including Ardian’s €2.5 billion acquisition of the Energia Group.
Private equity activity rose by nine per cent, with sponsors participating in seven of the 20 largest deals. At the same time, 2025 saw sustained activity in the mid-market, with 90 per cent of all deals valued at between €5 million and €250 million.
Looking ahead, the prevailing mood is cautiously optimistic, with expected interest rate reductions likely to further ease funding pressures and support both strategic and private equity-backed transactions. Pressure to deploy “dry powder” and capitalise on stabilising valuations remains a feature of the market.
One clear trend to have emerged over the past year is a more targeted approach to deal making, with bidders prioritising strategic fit over broad sectoral momentum.
Due diligence processes are also becoming more rigorous. Sellers are increasingly expected to articulate how their businesses perform under different market conditions, from geopolitical uncertainty to sudden shifts in interest rates.
There’s a lot of scenario analysis being conducted by vendors to understand what the risks are, and to try and mitigate against them, before they go to market.
While buyers are more selective, appetite remains strong for quality assets, particularly those with depth in leadership and operational resilience.
Solid businesses with strong management teams are very attractive to international buyers – private equity as well as trade. You’ve also got so much private equity that needs to get deployed and is looking for opportunity.
Ireland’s position as a stable, pro-business environment, with access to the EU single market and a deep talent and innovation base, continues to support inbound interest. Although valuation discipline is likely to persist, activity remains centred on opportunities with durable earnings and clear value-creation plans.
Geopolitical developments and evolving trade policies may influence deal structures and timelines, but Ireland’s structural fundamentals continue to point to a resilient deal-making environment as 2026 unfolds.