The average value of M&A transactions soars in 2025
There is something interesting going on in the Spanish M&A market. While the number of transactions fell by 16.8% in the months to July 2025 (1,837 deals against 2,208 for the same period in 2024), the aggregate deal value barely decreased by 10.7%, reaching EUR58,426 million (TTR Data, Aug. 2025). That means that each transaction is, on average, larger and more complex than in previous years. It also means that, although there are fewer deals, there is more cash circulating.
Less volume, more value
Spain closed 2024 with 3,473 deals amounting to around EUR96,000 million (TTR Data, Jan. 2025). A year later, the picture is different, with the start of 2025 proving particularly challenging: According to DC Advisory, there were only 22 large deals in the first trimester, against 54 in 2024- a 60% drop (Cinco Días, May 2025). Across the market as a whole, TTR registered 697 deals in that same period.
However, one thing to bear in mind is that the average deal value is growing because investors are focusing on premium assets. Globally, the trend is similar: in the first trimester of 2025 deal volume decreased by 9%, but total deal value increased by 15% compared to 2024 (PwC Global M&A Trends, Jul. 2025).
The sectors setting the pace
Technology: digital transformation and the rise of AI are increasing valuations. A start-up with a modest turnover can reach a strong valuation if it owns strategic technology.
Real Estate: International funds perceive Spain as a stable market and with more attractive prices than France or the UK. In the first semester of 2025 real estate investment reached EUR7,300 million, 22% more than in 2024 (CBRE, Jul. 2025)
Energy and Infrastructure: Large-scale transactions are concentrated in critical and sustainable assets, with EBITDA multiples proving resilient.
International buyers and the most competitive funds are searching for quality. They prefer one EUR500 million deal to ten EUR50 million transactions.
What has changed
The macro-economic context helps to understand this change:
- Interest rates: Although high, they´re showing signs of stabilisation since the BCE´s latest decision in July 2025.
- Inflation: easing to around 2.7%, compared with the peaks of 2023–24.
- Balance sheets: many companies have cleaned up their debt and are seeking growth through acquisitions.
Globally, the same pattern is replicated: In the first half of 2025 deal volume decreased by 9% but values increased by 15% compared to 2024 (PwC Global M&A Trends, Jul. 2025).
This mega-deal focus is creating new risks:
- Systemic impact: the failure of a few large deals can hit harder than dozens of medium-sized transactions.
- Access gap: SME´s and mid-cap firms are finding it harder to attract investors´ attention, unless they manage to stand out.
- Greater regulatory scrutiny: The Spanish Markets and Competition Authority and Brussels are keeping a close eye on mergers that could affect competition.
An opportunity for SME´s
Companies wanting to attract strategic investors or international funds must be better prepared, through:
● Financial optimisation
● Sustainability and ESG strengthening
● Digital positioning
● Clear and transparent documentation for due diligence
Confianz focuses exactly on this market blind spot: transforming good companies into exceptional targets, able to attract premium capital in a market where mediocrity no longer has a place.
The era of small, scattered deals is fading, ushering in an era of strategic precision.
