Deloitte M&A Index 2025 Q2

In the first quarter, the number of transactions decreased from 3,328 to 2,841, which represents a decrease in activity of 17 %. The aggregate value of trades made over the past 12 months has also fallen – from the original USD 685 to USD 670 billion.

"The renewed economic growth has not yet been significantly reflected in the activity on the M&A market. The current uncertainty and reticence of companies is hampering decision-making on transactions. However, we expect renewed interest and a gradual recovery in the M&A market after the situation calms down," says Miroslav Linhart, Partner in Charge of Financial Advisory at Deloitte.

"After last year's revival of activity in the M&A market, we are observing changes in the market structure. The uncertainty associated with the initial steps of the US administration forced many larger companies to be cautious and postpone strategic decisions. While interest in the acquisition of small and medium-sized enterprises has persisted, the market for large companies is picking up again after the initial waiting phase," adds Jan Vomáčka, Partner in the Financial Advisory function of Deloitte.

Investment activity in the Czech Republic was effected by a seasonal slump and the waiting of multinational companies. On the possitive note, the domestic economy has slowly begun to recover. Exports of goods increased by 6.4% year-on-year and supported the increase in GDP in Q1 by 0.5% compared to the previous quarter, or by 2.0% year-on-year.  The CNB continued to cut interest rates to the current 3.5%. The recovery of economic growth is also indicated by a year-on-year increase in industrial production by 0.6% and construction output by 6.3%.

In the first quarter of 2025, 17 transactions took place in the Czech Republic, according to Capital IQ. All large transactions were announced in January. These were three real estate acquisitions, where PPF Real Estate Group acquired the largest Czech hotel, Hilton Prague, fund CCM acquired a 25 % stake in the Černý Most shopping centre, and Max Realitní Fund bought two commercial and administrative centres, Flora and Myslbek. The remaining months were marked by small and medium-sized mergers and acquisitions. For example, the British Orbian acquired the fintech start-up Roger, which specializes in financing invoices. The Penta Hospitals healthcare group also made purchases, acquiring two providers of premium, occupational health and outpatient healthcare services – TeamPrevent-Santé and Santé Group.

What is the Deloitte M&A Index?

The Deloitte M&A Index is a forward-looking indicator that predicts the future number of mergers and acquisitions on the market – the number of transactions announced over the period under review – and identifies the key factors influencing the conditions for closing deals in the European market (characterized as the 27 EU countries + the UK). The model compiles data from various global databases, including Capital IQ, Mergermarket, Pitchbook, Eurostat, and many others. It uses a combination of statistical and algorithmic tools to provide a comprehensive overview of M&A market activity. The index consists of market indicators – specifically those related to macroeconomic reality, liquidity, and general market dynamics. Despite the increased volatility of recent periods – caused mainly by the exogenous effects of the coronavirus pandemic and the war in Ukraine – the model retains statistical and econometric significance and credibility.

You can download the new Deloitte M&A Index here.