Spain remains a reliable destination for M&A
In the first 8 months of 2024, the Spanish M&A market has shown its capacity to reinvent itself, adapt and offer new opportunities for those that believe in its robustness.
While the number of transactions has experienced a slight decrease of 5%, mobilised capital has increased by 40%, reaching EUR69.7 billion. This is a positive development which reveals that transactions are larger. Notably, it also constitutes a show of confidence in the Spanish market and its companies.
This positive landscape goes beyond the figures. The resilience of the Spanish market is not only remarkable, but inspiring. Despite economic uncertainty, Spain continues to attract investors who are willing to buy big. According to the TTR Data report, sectors such as real estate, at the forefront with 372 transactions, reflect this stability and continued appeal. Although we have witnessed a slight, 14% decrease in transactions in the sector, it remains a cornerstone of transactional activity in Spain, and has reinforced its attractiveness even during volatile times.
In addition, technology continues to attract considerable interest, with 190 transactions in the months to August 2024. Although this figure represents a 17% decrease, it underscores how digitalisation and innovation are boosting the economy.
On a separate note, I am surprised about the remarkable increase in transactions in the travel sector, which has seen a 70% rise in the number of agreements and a total of 143 transactions. This growth reflects the recovery of tourism after the pandemic, and shows that the sector has not only recovered, but been able to adapt to the new demands of current travellers.
From an international perspective, we are witnessing growing demand from foreign investors. The US and UK are leading investments in the country, demonstrating that the Spanish economy is still perceived as a safe option with promising prospects. US investors, for instance, have completed 114 deals in Spain, investing a total of EUR9.85 billion, while UK investors have closed 99 deals worth EUR6.85 billion. These numbers reflect a solid economic relationship, where both local and foreign investors see Spain as a destination which promises strong returns.
For those of us who look ahead, it is essential to remain in tune with trends and areas of growth. The interest of venture capital funds is expected to continue increasing during the second half of 2024 and the first half of 2025, particularly in strategic sectors such as technology, healthcare and energy. These sectors do not only reflect current investment priorities, but also a commitment towards sustainability and the development of areas which are key to social and economic growth.
Private capital also deserves attention, with a 116% increase in transaction volume. This figure suggests that the deals involved are not only focused on short-term returns, but also long-term sustainable value.
Meanwhile, venture capital has experienced a slight deceleration, with a 15% decrease in the number of transactions.
For our part, when we think of the Spanish M&A market, we do not only see figures. We see a range of possibilities, potential for growth and, especially, a platform in which companies of all sizes are able to grow.
The market remains dynamic, with companies and sectors ready to seize new opportunities. And at Confianz we know that each step counts, and that a well-informed decision brings us closer to a future which is even stronger and brighter.
