Benelux M&A Trend Survey 2024/25: Key insights and predictions

After a year marked by challenges, 78% of M&A professionals are anticipating a surge in deal volume. In our 2024/25 Benelux Trend Survey Report, developed in collaboration with MeNA, a survey of 175 Dutch and Belgian M&A professionals found there were several key factors fuelling this optimism in the region.  

1. The impact of falling interest rates

Lower borrowing costs are a significant driver of M&A activity in Benelux. As Sander Neeteson, Head of Corporate Finance at ABN AMRO Bank, notes, "It leads to lower financing costs, which can make acquisitions more attractive." This, coupled with a potential revival of the stock markets, is likely to lead to an increase in share-based deals in 2025.

2. Economic recovery 

As economies in the region gradually recover from recent downturns, dealmakers are more confident about the future. Hossein Araghi, Managing Director Benelux at IT company Lyvia Group, believes that part of the expected increase is simply a return to the higher levels of 2021 and 2022.

However, many dealmakers are also factoring in the "new normal" of uncertainty. When commenting on this state, Sjoerd Peijster, Corporate Development Manager at construction company Strukton, he noted that people have become accustomed to uncertainty, which, combined with ample available capital, can drive deals forward despite geopolitical tensions.

3. Private equity on the move

Finally, the survey found that private equity firms are increasingly looking to divest assets, creating more opportunities for buyers. This, coupled with a high appetite for acquisitions, will significantly boost M&A activity.

A closer look at the numbers

In addition to the 175 survey respondents, the report also includes in-depth interviews with over 35 dealmakers in Benelux. This quantitative and qualitative data painted a clear picture of the M&A market, and according to the results, the majority of respondents expect an increase in deal volume:  

• 60% expect a small increase in deal volume (2-10%).
• 18% predict a strong increase (more than 10%).
• 14% believe deal volume will remain the same.
• 7% expect a decrease.
• 1% anticipate a sharp decline.

Navigating the road ahead

While the overall outlook for the Benelux M&A market is positive, dealmakers cautioned several factors that could temper growth or even lead to a decline.

The valuation gap between buyers and sellers continues to be a significant hurdle. However, as Lieke van der Velden, Managing Partner at law firm NautaDutilh, points out, "Lower interest rates will help narrow that gap. People are starting to realize that 2021 pricing won't return anytime soon."

Economic uncertainties, geopolitical tensions, and potential market volatility are also considered to still impact deal activity. While many dealmakers are more accustomed to uncertainty, it remains a factor that could dampen enthusiasm.

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Segment-specific trends

To navigate these challenges, many dealmakers are taking a cautious approach, focusing on smaller and mid-market deals where financing is more readily available. Larger deals may face more significant hurdles due to financing constraints.

• Small and mid-market: This segment is expected to see significant growth, particularly in sectors like technology, energy, and healthcare.
• Large-cap deals: While there may be a resurgence of mega-deals, particularly in sectors like technology, financing constraints could limit their frequency.

Uncover the insights 

According to our 2024/25 Benelux Trend Survey Report, developed in collaboration with MeNA, the Benelux M&A market is poised for a potential revival. Read the full report to uncover how falling interest rates, economic recovery, and increased private equity activity are driving this growth.