A rebound in Irish merger and acquisition (M&A) activity during 2024 was largely fuelled by falling interest rates, sector consolidation and continued activity by large corporate and private-equity investors. Ongoing geopolitical instability had an impact, however, and observers say 2025 M&A activity and decision-making will also be vulnerable to economic uncertainty driven by ongoing conflicts, the climate crisis and the new administration in the United States.
At the beginning of 2024, expectations for M&A activity were cautiously optimistic, with improving economic conditions and stabilising interest rates anticipated to drive deal-making, says Mark McEnroe, partner in corporate finance at PwC. “Globally, M&A activity saw a moderate rebound compared to 2023. Large-cap deals remained selective, while mid-market transactions flourished, particularly in sectors like technology, healthcare and financial services.”
Globally, 2024 saw a staggering level of political change, notes Katharine Byrne, a partner in deal advisory at BDO. “Over 60 countries went to the polls and the outcomes proved to be tough for the incumbents,” she says.
Global deal activity, she adds, largely appears to have settled down from the “unsustainable peak” seen in the early part of 2022 but some notable trends emerged. “Across the mid-market, the mix of private-equity [PE] deal-making activity was around one in three deals, which is much higher than historic levels.”
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And despite a turbulent year by any standards, the level of M&A activity during 2024 was robust and from an Irish perspective, increased over 2023, says Stephen Quinlivan, corporate partner in A&L Goodbody.
“From an A&L Goodbody perspective, based on Mergermarket statistics over the two-year period, our 60 reportable deals for 2024 represented an 18 per cent increase on our 2023 figure of 51,” he explains.
In fact, Byrne says Ireland outperformed global M&A market activity with a 10 per cent increase in the total number of transactions and a significant rise in the level of private equity-backed deals. This trend, she notes, is underpinned by the strength of the Irish economy and the opportunity for consolidation across certain industries such as healthcare and financial services.
“The success of Irish companies in international expansion and the role of private equity in supporting ambitious management teams have attracted more international private-equity funds into Ireland.”
Notable deals included LGT’s investment in H&MV Engineering alongside Exponent, the sale of a majority stake in Corlytics to Norwegian fund Verdane and the sale of majority stake in Winthrop to US PE group Blackstone.
“At a smaller level we are seeing a lot of consolidation with the private equity-backed Fairstone Group making multiple acquisitions in the wealth-management sector and Melior’s renewables platform Ohk Group completing their fourth acquisition,” adds Byrne.
The resilience of the Irish economy helped sustain steady levels of activity, McEnroe adds. “However, deal flow was sensitive to broader economic headwinds, including inflation and geopolitical uncertainty and this primarily manifested itself in prolonged transaction timelines.”
Quinlivan says he foresees a continued focus on sectors such as infrastructure, energy/renewable energy and the energy transition during 2025.
“Especially from an Irish perspective, given the new Government commitments in relation to infrastructure and housing, etc, put forward in the programme for government,” he says.
“From a US perspective, however, we would need to assess whether or not the Trump presidency and the focus on fossil fuels rather than renewable energy may have a dampening effect on this sector in the US.”
A notable trend in Ireland, McEnroe says, was the continued interest from overseas investors, particularly in the tech and life sciences sectors. “Additionally, the growing influence of private equity remained evident, with increased buy-and-build strategies.” Looking ahead to 2025, he believes these trends will persist, with AI-driven M&A activity likely accelerating further. “However, dealmakers will remain cautious, closely monitoring macroeconomic conditions, regulatory developments and geopolitical shifts.”
Extreme weather events and the broader climate crisis are significantly influencing M&A activity, particularly in energy and infrastructure. “Investors are prioritising assets with strong ESG credentials, and there’s a growing trend of acquisitions in renewables, energy transition technologies and climate-resilient infrastructure,” McEnroe says. He believes that companies in Ireland’s renewable energy sector, particularly offshore wind and green hydrogen, are likely to attract heightened M&A interest in 2025.
Moving into 2025, Byrne agrees that the outlook for M&A in Ireland remains strong. “Confidence levels across Irish companies and their capital providers is improving and we expect PE to continue to invest strongly into 2025 as interest rates begin to fall,” she says.
“Strategic buyers will also need to deploy some of the high levels of cash as they seek to add to capability, but we also predict a number of divestments as large corporates refocus on their core business.”
Yet all agree that regulatory and policy changes will continue to affect M&A activity, influencing approval processes and creating uncertainties around outcomes and timelines. “Dealmakers must also address challenges related to foreign direct investment restrictions and security considerations,” Byrne says, adding that M&A processes face increased scrutiny due to evolving data privacy laws, cybersecurity threats, and regulatory frameworks focused on ESG. “These factors are influencing how companies structure, evaluate, and execute deals.”
Experts are also closely monitoring any US policy changes that could directly impact Irish companies. “The most significant variable that could have an impact on Irish M&A may be the Trump administration in the US and whether a reduction in US corporate tax, introduction of tariffs or other measures designed to encourage US companies to repatriate from Ireland and Europe, would have an impact on M&A activity here,” Quinlivan says.
