Merger and acquisitions activity in Ireland proved remarkably robust during 2025 against a backdrop of global economic uncertainty and geopolitical turbulence. Law firm William Fry’s full-year M&A review shows Ireland recorded 524 deals, a 3 per cent volume increase on 2024, even as global M&A activity hit a 20-year low in April following the USA’s “liberation day” tariff shock.
“This relative outperformance highlights the strength of Ireland’s economic base, including a diversified sector base and a consistently stable mid‑market that proves less affected by short‑term disruption,” says Andrew McIntyre, head of corporate and M&A at William Fry.
Ireland’s macroeconomic conditions also remained favourable, with the International Monetary Fund forecasting 9.1 per cent GDP growth for 2025, sustaining corporate confidence and investment appetite.
“So, while the global environment might have suggested a slowdown, Ireland’s structural strengths, especially its multinational footprint and high‑performing domestic sectors, meant the conditions for sustained activity were firmly in place,” says McIntyre.
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A combination of structural and cyclical factors underpinned that strong performance.
“The most significant was the continued dominance of inbound activity, with international acquirers responsible for 59 per cent of all transactions and 72 per cent of total deal value,” says McIntyre.
“International bidders also led 15 of the 20 largest deals announced in 2025. Cross‑border buyers, particularly from the US, UK, and Europe, remained active, drawn by Ireland’s stable regulatory environment, skilled talent base, and strong industry clusters.”
The mid‑market continued to be the engine of Irish M&A, accounting for 90 per cent of disclosed transactions and providing consistent deal flow even as overall large‑cap activity moderated.
Sectoral strength in energy and utilities, pharmaceuticals and biotech, and financial services collectively accounted for many of the year’s largest deals. Technology, media and telecoms (TMT) activity also remained resilient in volume terms, even though overall deal values contracted.
Large‑cap deals still featured, with 12 deals worth €250 million or more, including the year’s largest deal, Ardian’s €2.5 billion acquisition of the Energia Group.
Private equity activity rose by nine per cent, with sponsors participating in seven of the 20 largest deals.
“Total M&A value fell 35 per cent year on year, but this was primarily due to the absence of a 2024-style megadeal, namely the €10.1 billion Fab 34/Apollo transaction, which skewed the prior year’s numbers. When viewed over a longer period, total value and volume levels were higher than seven out of the last 10 years,” says McIntyre.
At the same time, 2025 saw sustained activity in the midmarket, with 90 per cent of all deals valued at between €5 million and €250 million.
Looking ahead, the phrase du jour is “cautiously optimistic”, with expected interest rate reductions likely to further ease funding pressures and support both strategic and private equity‑backed transactions.
Pressure to deploy “dry powder” and capitalise on stabilising valuations is also a feature.
“Ireland’s status as a strategic gateway remained vital, with significant interest from US and European buyers,” says Jennie Quirke, partner in A&L Goodbody’s corporate transactions and M&A group. “In addition, following ECB interest-rate cuts in mid-2025, financing conditions improved, helping to narrow the ‘valuation gap’ and improving access to financing for buyers.”
It’s why she reckons the outlook for 2026 remains positive, with an expectation that transaction volumes will either increase or at least remain stable. In particular, she expects the year will see a continuing strong focus on the technology sector, driven by AI integration and cybersecurity, with additional high-performing sectors including healthcare, energy and infrastructure, and financial services.
“In the context of the geopolitical developments of 2025 and those of 2026 so far, we expect deal makers to approach the market with a degree of cautious optimism and prepared to adapt quickly to market volatility. If global conditions stabilise, there may be a tailwind of M&A activity in 2026,” says Quirke.
One clear trend to have emerged over the past year is a more targeted approach to deal making, “with bidders prioritising strategic fit over broad sectoral momentum,” says Katharine Byrne, head of deal advisory at BDO Ireland.
Due diligence is taking longer, and sellers need to be able to spell out more clearly the impact of a variety of scenarios, from geopolitical uncertainty to a sudden shift in interest rates. “There’s a lot of scenario analysis being conducted by vendors to understand what the risks are, and to try and mitigate against them, before they go to market,” says Byrne.
But what has been equally striking is how resilient Irish businesses have proved.
“Solid businesses with strong management teams are very attractive to international buyers – private equity as well as trade. You’ve also got so much private equity that needs to get deployed and is looking for opportunity.”
The fact that Ireland remains a stable, pro-business environment, with access to the EU single market and a competitive tax regime, supported by a deep talent and innovation base, all helps, says Laura Gilbride, deals partner at PwC Ireland.
“Our strong FDI base and Ireland’s position as a stable, English-speaking EU gateway kept international buyers engaged, led by UK and US buyers seeking EU access and cross-border synergies,” she adds.
This, in part, is why the outlook is indeed “cautiously optimistic”, says her colleague James McMenamin, PwC Ireland’s corporate finance partner, who expects cross-border appetite to remain strong, particularly from the UK and US.
“Valuation discipline is likely to persist, keeping activity centred on opportunities with durable earnings and clear value-creation plans, and competitive tension should remain strongest in the midmarket,” says McMenamin.
“The principal variables are geopolitical developments and evolving trade policies, which may influence deal structures and timelines, but Ireland’s fundamentals point to a resilient deal-making environment.”
