M&A Index

The M&A markets continue to be supported by record cash balances of unallocated private equity capital, which amounted to $2.51 trillion at the end of last year. Financial and strategic investors are expected to begin re-entering the market this year and unwinding their accumulated capital through investments in synergistic businesses or high-quality assets, such as companies with strong market positions, long histories and successful business strategies.

"Unallocated private equity capital amounting to USD 2.5 trillion continues to encourage M&A markets. While geopolitical tensions and structural challenges remain, cheaper borrowing costs and renewed consumer confidence are creating fertile ground for dealmaking. The M&A landscape is poised to benefit from these favourable conditions as opportunities emerge across Europe.”

adds Jan Vomáčka, Partner and the head of the transaction advisory team at Deloitte.

Global developments and politics continue to influence markets, according to Deloitte experts. The war in Ukraine continues without either side gaining a decisive advantage. The dynamics of tensions in the Middle East changed during the year with the arrival of new participants in the conflict between Israel and Hamas and the fall of the Syrian regime. These events negatively impacted financial markets, supply chains, oil and other commodity prices. However, the past year has also provided the necessary time for agents to adapt and prepare for similar risks, which has led to a calming of price levels, but also further fragmentation of the global economy.

Despite increasing global conflicts and political tensions, along with tight monetary policy, 2024 has evolved as a period of consolidation, and recovery. Relatively stable commodity prices played a key role in supporting disinflationary tendencies throughout the year. However, households and many businesses, particularly in Germany and the Central and Eastern Europe (CEE) region, continued to face persistent economic challenges that constrained household consumption - the main driver of economic growth. Nevertheless, the situation is slowly improving. After several years of stagnation, real wages have began to rise, while at the same time a slow growth of (still low) consumer confidence is beginning to take effect. A combination of factors, including fading inflationary pressures and a cautious growth outlook, positively shaped the economic environment throughout last year. 2025 thus represents an interesting starting point at the beginning of the next business cycle.

There has been a slight increase in the number of transactions over the past year, from 11,629 in 2023 to 12,682 in 2024, which represents a 9.1% year-on-year increase, bringing total transaction volumes close to pre-war levels. In addition, the total value of transactions has also seen a significant recovery, namely a 48% year-on-year growth.