These are uncertain times. Political and geopolitical instability, trade disputes and the risk of a recession are all factors that are clouding analysts’ expectations. And yet… Despite the turbulent environment, mergers and acquisitions are continuing, particularly in Europe. Here, the experts at AURIS Finance, a consultancy specialising in mergers and acquisitions, share their insights.
According to Pitchbook data quoted by Euronews, the value of transactions reached 2,000 billion dollars in the first half of 2025, marking a 13.6% year-on-year surge. A total of 24,793 transactions were recorded — a 16.2% increase compared with the first half of 2024. This is a significant figure, despite the particularly unstable economic and geopolitical context. “If companies can match the number of transactions carried out in the first half of 2025, it will be the best year for mergers and acquisitions in Europe in more than a decade,” argue the experts quoted by Euronews.
Resilience varies from sector to sector
There are several factors that explain this resilience. Firstly, financing conditions have improved slightly due to lower interest rates, which has facilitated negotiations and allowed some postponed projects to restart. Secondly, companies still have ample cash reserves, which they are using to acquire competing or complementary entities. The challenges of the ecological transition are forcing managers to redefine their business models. This is evident in the case of the giant Alstom, for example. According to Novethic, 84% of the group’s investments are in activities that contribute to sustainability. In this context, the company is choosing to divest certain activities and acquire new entities in order to reposition itself. The dynamism of mergers and acquisitions can also be explained by geographical realignments. Some companies are pulling out of markets where geopolitical risks are too high. They are focusing on national and European markets.
European slowdowns
This refocusing goes hand in hand with consolidation. In Europe, the emergence of ‘European champions’ has become a matter of sovereignty and security. The Draghi report, presented in September 2024, emphasised the importance of encouraging consolidation within Europe. A year later, Mario Draghi criticised Europe’s ‘slowness’ in the face of Chinese and American giants. He illustrated this with Europe’s lag in the field of artificial intelligence: “Last year, the United States produced 40 major foundation models, China produced 15, and the EU produced just 3”. The former president of the European Central Bank is calling for Europe to speed up in cutting-edge technology and decarbonisation.
More complex transactions
In Europe, transactions are moving more slowly. We are a long way from the frenetic year of 2022, when the market experienced what has been termed ‘transactional bulimia’. In the face of uncertainty, market participants are increasingly turning to mechanisms designed to secure transactions. Earn-out clauses, adjustments based on future results, and staggered payments are becoming commonplace. The sophistication of these transactions reflects the concerns of acquirers and the caution of investors. Both are becoming more selective, favouring targets with good financial visibility and robust growth potential.
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In an increasingly complex environment, the specialists at AURIS Finance are here to support you. Our experts specialise by sector. We will be by your side throughout the sales, acquisitions and financing processes.
