Volume of M&A deals Europe 1985-2023

M&A activity in Europe fell in 2020 due to the coronavirus (COVID-19) pandemic. Approximately 3,000 fewer deals were closed in 2020 when compared with 2019. The peak of European M&A activity was reached in 2021 when over 23,500 deals were closed. The largest ever M&A deal to take place in Europe was the 1999 acquisition of Mannesmann AG by Vodafone AirTouch.

What benefits can M&A bring to buyers?

Mergers and acquisitions (M&A) are an important branch of corporate strategy which deal with the combining, or buying and selling of companies with the aim of helping to promote the growth of the enterprise in its sector. The combining of two companies can boost financial power, market share and business activity, allowing the newly formed company to further develop and expand within its sector and territory. Distressed or turnaround opportunities were cited as primary acquisition motivations for private equity firms in Europe.

Deal drivers

The main drivers behind M&A deals is highly dependent on whether the company in question coming from the buyer-side or seller-side of the acquisition. According to experts, the most active sectors for European M&A in 2020 include the technology, media and communication industry, and he business and financial services sector.