M&A market Germany 2025: Number of deals to increase significantly
Companies and investors have been very cautious in their M&A activities in the last two years. However, experts now expect a significant increase in corporate transactions in Germany in 2025. This is the conclusion reached by the auditors and consultants at KPMG and the investment bank Lincoln International.
Lincoln is forecasting 20% more mergers & acquisitions than in 2024. 77% of stakeholders surveyed by KPMG are planning at least one deal for 2025. They also expect an increase in M&A transactions overall. These are the findings of a KPMG study conducted in November 2024 among 185 companies and private equity firms in Germany.
Transformation and digitalization are fuelling M&A
After years of high inflation rates, rising energy and interest costs and the effects of the war in Ukraine, a falling key interest rate in the eurozone is now attracting investors. As further reasons for the expected increase in corporate transactions the experts also cite
the pressure to transform in many sectors – for example in order to reach a critical size –,
the need for company succession planning and
the importance of digital business models and the impact of artificial intelligence (AI) on business.
Focus on due diligence and risk assessment
Despite the positive outlook for deal activities, 90% of those surveyed by KPMG see major challenges in closing deals. In addition to integration planning, one of the biggest hurdles is agreeing on the company value. Sellers often have expectations that are too high and do not reflect current market conditions. Legal disputes can also delay or prevent the successful conclusion of a deal. Uncertain interest rate conditions and volatile market conditions are additional risk factors. Increased attention is therefore being paid to diligence and risk assessment.
Virtual data rooms (VDRs) support the due diligence process
A virtual data room such as netfiles Deal Room facilitates due diligence audits and contributes to efficient and transparent processes. With netfiles Deal Room, you can make documents available to all parties – regardless of their location – centrally, in a structured manner and protected from unauthorized access. Important figures and metrics can be easily accessed and kept up-to-date at all times. And bidders can use the data room to check all documents simultaneously, but separately from each other.
ESG aspects are part of almost every due diligence process
Sustainable corporate governance is becoming increasingly important in buying and investment decisions. Companies should therefore comprehensively document their operational measures relating to environmental protection, diversity or ethical corporate governance. According to the experts at Lincoln, “mergers and acquisitions are increasingly an important management tool for improving a company's own ESG profile”. netfiles Deal Room therefore already maps the relevant environmental, social and corporate governance criteria in the data room index.
Further information on netfiles Deal Room
Read more on our website about how netfiles Deal Room supports you during the due diligence process and your M&A transactions. Should you have any further questions, our sales team will be happy to help and advise you.