Irish M&A market: Trends, drivers and outlook

The Irish M&A landscape has demonstrated remarkable resilience over the past year despite macroeconomic headwinds. Transaction volumes maintained steady momentum through 2024 and into 2025, with mid-market deals (€5-50 million) forming the backbone of activity.

Early 2024 saw cautious optimism as dealmakers adapted to the higher interest rate environment, with strategic buyers prioritising quality assets with proven cash flows. The second half witnessed increased momentum as financing conditions stabilised and valuations became more aligned between buyers and sellers. However, investor sentiment has shifted back to a more cautious tone in Q1 2025 amid geopolitical tensions. Generational shifts in global tariffs, government spending, AI and regulations are significantly altering the operating environment of Irish SMEs.

Factors driving growth

Corporate balance sheets

Irish corporate balance sheets have remained robust, providing a solid foundation for M&A activity. Many Irish companies emerged from recent economic challenges with significant cash reserves and healthier debt-to-equity ratios than in previous cycles. This financial strength has positioned them well to pursue strategic acquisitions.

Companies have increasingly turned to M&A to drive growth. With interest rates falling and financing channels remaining accessible for quality deals, cash-rich corporates have been able to capitalise on strategic opportunities that enhance their competitive positioning.

Private equity dynamics

The Irish private equity landscape has matured significantly, with the market now experiencing its first major wave of exits from investments made during the initial PE expansion period in Ireland. This recycling of capital has created new opportunities as PE firms divest mature investments and redeploy capital into emerging sectors.

International PE houses have maintained their interest in Irish assets, attracted by the country's stable business environment, favourable tax regime, and access to European markets. Simultaneously, domestic PE activity has expanded, with Irish firms growing in sophistication and scale, allowing them to compete effectively for larger transactions.

Cross-border activity

Cross-border activity remained significant, with Irish businesses attracting international buyers seeking strategic footholds in the EU. Simultaneously, Irish acquirers demonstrated an increased appetite for expansion internationally, particularly in the UK and continental Europe.

European M&A fully recovered from the subdued levels seen in 2021 and 2022, which were marked by monetary tightening. Circa 20,000 deals took place across Europe, buoyed by a shift in monetary policy driving deal count growth of 17.5% YoY to the highest level in over a decade.  However, as with Ireland, recent geopolitical tensions with the US and fears of the health of the global economy have taken centre stage, causing hesitation among investors.

Consolidation trends

Sector consolidation has been a key theme driving Irish M&A activity. This consolidation trend has been particularly prevalent in fragmented markets where regulatory requirements, technology investments and competitive pressures favour larger, more integrated operations. Several sectors remain particularly active in Irish M&A, namely:

• Technology: Ireland's tech ecosystem continues to drive significant M&A activity, with particular interest in fintech and software businesses serving regulated industries.
• Healthcare: The healthcare sector has seen substantial consolidation, particularly in primary care networks, speciality clinics and healthcare technology. Private equity has been especially active in building platforms in areas like dental and veterinary practices.
• Business services: Professional services firms have engaged in strategic combinations to enhance service offerings and geographic coverage. Accounting, legal and consulting firms have been particularly active as they pursue scale and specialised capabilities.
• Financial services: Continued consolidation among insurance brokers and wealth management firms seeking scale and operational efficiencies.
• Food & beverage: Ireland's strong agricultural foundation continues to support M&A in the food and beverage sector, with particular interest in premium and speciality food producers, sustainable food technology, and export-oriented businesses.
• Energy & infrastructure: Renewable energy assets, data centres and supporting infrastructure have attracted significant investment as Ireland advances its climate objectives and AI-driven demand for data centres and power.

Risks to M&A

Several risk factors may impact the Irish M&A market but none larger than the current resident of 1600 Pennsylvania Avenue, as policy from Washington vacillates wildly.

• Tariff and trade tensions: The evolving global trade landscape, including potential changes to tariff structures affecting Ireland's export markets, creates uncertainty for deals with significant cross-border elements.
• Economic uncertainty: Global economic volatility and the potential for recession in key trading partners could dampen deal enthusiasm and impact valuations.
• Regulatory scrutiny: Increased transaction scrutiny from competition authorities and sector-specific regulators could extend deal timelines and create additional completion risk.
• Financing conditions: While financing remains available for quality deals, any tightening of credit conditions could disproportionately impact highly leveraged transactions.

How Crowe Ireland can help

Crowe Ireland is uniquely positioned to support clients throughout the M&A lifecycle with our comprehensive suite of specialised services:

• Deal origination: Leveraging deep sector knowledge and extensive networks to identify strategic acquisition targets or potential buyers aligned with client objectives.
• Transaction support: Providing robust financial due diligence, tax structuring advice and commercial assessment to maximise value and minimise risk.
• Valuation expertise: Delivering independent, market-informed valuation services that reflect both current market conditions and long-term value drivers.
• Tax optimisation: Structuring transactions to achieve optimal tax outcomes while ensuring compliance with evolving regulatory frameworks.
• Post-deal integration: Supporting the critical integration phase with specialised services in organisational design, systems integration and cultural alignment.

Crowe Ireland combines local market knowledge with a global perspective. Our multidisciplinary approach brings together specialists in accounting, tax, corporate finance and consulting to provide holistic transaction support tailored to the specific requirements of each deal. This integrated service model ensures that all aspects of a transaction are addressed cohesively, from initial strategic assessment through to post-deal value realisation.

With the Irish M&A market evolving rapidly, Crowe Ireland's deep sector expertise and transaction experience position it as a trusted advisor capable of navigating complexity and delivering successful outcomes for clients across the transaction spectrum.