European Private Equity Outlook 2025 (Roland Berger)
Summary
- Over 90 % of surveyed professionals anticipate an increase in PE-involved M&A transactions in 2025, with 91 % expecting a year-on-year rise.p.5
- Pharmaceuticals & healthcare leads industry M&A transaction expectations with 71 % expecting higher activity, followed by technology, software & digital solutions at 69 %.p.7
- Mid-caps (EUR 150–699 m) and small-caps (EUR 50–149 m) are considered the most promising target asset classes with 68 % and 72 % expecting activity growth.p.8
- 59 % of PE professionals consider current transaction valuation multiples to be overvalued, down from 76 % in the previous year.p.12
- Divesting existing assets will be the primary focal point of PE activity in 2025 for 28 % of respondents, followed by portfolio company development at 21 %.p.18
- European deal volume fell in 2024 across major markets including DACH (-18 %), Nordics (-16 %), and France (-15 %), while the UK grew by +9 %.p.23
- Business services & logistics recorded ~672 deals and technology, software & digital solutions recorded ~604 deals as the top sectors by deal count in 2024.p.24
Key insights
- Over 90 % of European private equity professionals anticipate an increase in M&A activity involving PE in 2025.p.5
- The Nordics region is expected to experience the strongest shift in PE M&A momentum in 2025 among major European markets.p.6
- Co-investment and partnership models are regarded as the most impactful trend in the European PE space for 2025.p.9
- Secondary buyouts and family-owned business acquisitions represent the primary sources of attractive target companies in 2025.p.14
- Lower predictability of cash flows is identified as the main factor restricting debt financing availability for targets.p.17
- Value creation within portfolio companies is expected to play an important or very important role for 87 % of PE firms in 2025.p.19
- Digitalization and data analytics is cited as the top portfolio management and value creation priority for 2025.p.20
- Artificial intelligence deployment is predicted to deliver its greatest private equity benefits in deal sourcing and value creation.p.21
Topics and entities
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