The 2025 edition of the Dealsuite report outlines the key trends shaping the mid-market M&A landscape across Europe and beyond. It captures how the sector is evolving under the influence of macroeconomic uncertainty, increasing digitalization, and changing strategic priorities among buyers and sellers.
1/ Market trends
M&A activity continues to rise across company sizes, driven by the need for accelerated growth and portfolio optimization. Large corporates, SMEs, and private equity firms are all increasingly active in the mid-market, which offers rich opportunities due to the sheer number of companies, attractive valuations, and potential for operational improvement.
Notably, the SF model is gaining significant traction. More entrepreneurs are becoming first-time CEOs through acquisition, opting for the ETA model over starting businesses from scratch. This offers a quicker and less risky path to business ownership.
Meanwhile, motives for M&A are diversifying. Beyond classic goals like revenue growth and cost synergies, companies are pursuing acquisitions to prevent disruption, improve ESG scores, access talent (acqui-hiring), and manage geopolitical or reputational risks. As deal structures diversify, non-traditional forms of collaboration, such as joint ventures, partnerships, and minority investments, are becoming mainstream.
2/ Strategy trends
Strategically, the emphasis is shifting from scale deals (for size and efficiency) to scope deals (for new capabilities and markets). This aligns with a broader, long-term trend where companies are looking to future-proof their business through acquisitions that enhance adaptability and strategic positioning.
The report highlights that programmatic M&A (conducting multiple small to mid-sized deals consistently) outperforms sporadic large transactions. This approach enables companies to continuously build capabilities and stay ahead of industry disruption.
Additionally, there is a notable shift in performance metrics, particularly among private equity investors. While IRR remains relevant, DPI is now the preferred KPI, reflecting a stronger emphasis on cash returns and liquidity in uncertain times.
Another key evolution is the adoption of an “outside-in” approach to M&A. Rather than being bound by current business models, leading acquirers explore broader ecosystems to identify value-creating opportunities, focusing on where value and profit pools are shifting.
3/ Execution trends
The success rate of M&A transactions has significantly improved, with nearly 70% of deals now considered successful. This is due to:
- Broader strategic rationales,
- More refined due diligence (including culture, ESG, and AI governance),
- Increased dealmaking experience, and
- Better post-merger integration.
Speed and agility in execution are now critical competitive advantages. Modern M&A teams operate more like agile project managers, with clear playbooks and fast decision-making protocols. The traditional idea of exclusivity has also changed: buyers must move quickly to stand out, but exclusivity is typically only granted after the NDA and information memorandum stages.
Another trend is the fading distinction between companies being “on the market” and “off the market.” In today’s environment, most companies are open to opportunities at any time, including lighter forms of cooperation such as alliances or shared initiatives, which can later evolve into full transactions.
4/ Digitalization of M&A
Digitalization is reshaping every aspect of the M&A process, from deal sourcing to due diligence. Tools like Dealsuite and virtual data rooms are now standard. AI-driven platforms are being used to analyze financials, identify risks, assess compatibility, and even help source targets. This allows acquirers to evaluate more opportunities faster and with greater precision.
These digital tools are particularly impactful for SMEs, where M&A responsibility is often held by a single person. Technology empowers them to operate more like professional investors, levelling the playing field.
The rise of AI is especially transformative, with applications in predictive analytics, document analysis, and decision support. As a result, M&A is becoming more data-driven, proactive, and scalable.
At the same time, the report emphasizes that M&A remains a human business. Personal relationships, trust, and qualitative judgment still matter, especially in the final negotiation stages. The future of M&A is human-led, data-driven, and technology-powered.
Download the full report:
https://www.dealsuite.com/en/blogs/m-a-mid-market-trends-report-2025
