Ireland’s mergers and acquisitions (M&A) market is once again showing signs of momentum. With interest rates expected to ease further, businesses may find room to manoeuvre but challenges persist, particularly around global trade disruption.
Irish M&A deal volumes saw a slight increase in 2024 compared to 2023, says Ronan Murray, EY Ireland corporate finance partner. “Despite macroeconomic volatility and geopolitical challenges, the Irish M&A market has once again proven to be remarkably resilient. A key driver of this activity is the robust interest from private equity firms in Irish private enterprises; this is evidenced by a significant upturn in private equity deal volumes year on year.
“The strong availability of capital from both domestic and international private equity firms underscores their increasing influence on the Irish M&A landscape. We have seen these trends continue in the first half of 2025 and expect them to remain strong in the second half of the year.”
Indeed, the €1.4 billion sale of Dalata Hotel Group to Scandinavian property companies Pandox and Eiendomsspar saw the second half get off to a strong start.
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Deal volumes and values have risen on 2023 levels, with sectors such as IT managed services and software remaining resilient, attracting both private equity and international trade interest, with notable strategic transactions such as the sale of PlanNet21 to Conscia and the acquisition of Storm Technology by Littlefish (backed by Bowmark Capital) prime examples, says Murray. “We are also observing stronger mid-market momentum as pricing expectations begin to align between buyers and sellers.”
“Despite global headwinds, strategic acquisitions continued, driven by strong fundamentals and transformation agendas,” says Laura Gilbride, deals partner, corporate finance, at PwC.
EY Ireland corporate finance partner Fergal McAleavey says the outlook for the remainder of 2025 looks positive, with strong resilience and growth expected to continue into the second half of the year.
“We expect that technology, media and telecoms, and healthcare will be key sectors for driving momentum in Irish M&A for the remainder of 2025 and into 2026. Strategic buyers are demonstrating a strong appetite and private equity has significant ‘dry power’ to deploy, especially on the back of a number of recent fundraises.
“We’re seeing a growing interest in succession-led deals and founder-led exits that had previously been deferred due to uncertainty in the 2023-to-2024 period. The feedback that we are getting from clients is that despite the global geopolitical uncertainty these is still confidence around the strength of the domestic economy.”
Industry reports from EY Ireland and PwC Ireland indicate that private equity will remain a significant driver in the Irish M&A market in 2025 and beyond. Strong fundraising and capital availability are enabling investors to target platform companies with bolt-on growth potential. At the same time, corporate buyers are prioritising deals that support diversification, digital transformation and operational resilience amid ongoing global uncertainties.
Interest rates in the State have begun to ease, improving financing conditions and enabling cash-rich corporates to pursue strategic deals, says Gilbride. “If this trend continues, it could unlock pent-up demand and support further M&A activity, particularly in capital-intensive sectors.”
Lower interest rates reduce the cost of debt and therefore are increasing M&A appetite among PE and strategic acquirers, says Murray. “This has helped bridge the valuation gap between buyers and sellers and we are seeing more flexible capital structures emerge.”
“The expected downward trajectory in interest rates will undoubtedly bring welcome relief for many and facilitate M&A activity which was constrained or paused over recent years,” adds Russell Smyth, head of sustainable futures at KPMG in Ireland.
Irish businesses are increasingly prioritising domestic consolidation, operational resilience and core business focus, according to McAleavey. “In parallel, investor concerns have moved beyond electoral outcomes and are now sharply focused on changes to US trade policies, including the recently agreed 15 per cent EU-US trade deal, which despite being far from ideal, at least provides some certainty for businesses.”
AI is now a central driver of M&A strategy, says Gilbride. “Companies are increasingly acquiring AI capabilities to accelerate transformation and stay ahead of disruption. Increasingly, AI is a tool deployed in diligence; for example, testing whether commoditised AI can rebuild the tech stack of a software company.”
Murray adds: “AI is already beginning to take on a more significant role in the M&A process and this will only increase.” AI-driven tools can deliver data-informed insights to aid financial forecasting and uncover synergies between organisations, he says.
“Although the adoption of AI in M&A is increasing, it has not yet become widespread. Many professionals are beginning to recognise its value and are incorporating it into their processes. Investment in AI is increasing and its usage in transactions is expected to grow significantly over the coming years as the benefits become evident and new applications are developed.”
Pre-AI, valuation relied heavily on structured financials and incomplete peer data, whereas now we can now analyse far larger data sets to support or challenge assumptions, says McAleavey. “AI helps stakeholders rapidly generate more dynamic, scenario-based models that would have previously taken considerable time to build.
“While these tools improve efficiency and expand the breadth of analysis, they don’t replace judgment. A human lens is still required and applied especially when interpreting sector-specific drivers or soft factors. So, while AI hasn’t changed the underlying valuation principles, it has unquestionably changed the process, making it faster, more rigorous, and often more insightful.”
Gilbride agrees. “Certain AI-focused deals are commanding premium valuations, with strong revenue multiples in sectors like health tech and cybersecurity,” she says. “Investors are now focusing on how resilient a business model is to potential disruption by Gen AI.”
