Ireland’s M&A Activity: Trends, Numbers, and a Promising 2026 Outlook
- donalosullivan
- Aug 5
- 4 min read
Updated: Aug 6
Navigating Through Uncertainty Toward a Rebound in Irish Deal-Making
The Irish mergers and acquisitions (M&A) market experienced a measured rebound in 2023 after a global slowdown in 2022, driven by rising interest rates, geopolitical instability, and investor caution. Yet, as we look toward 2026, confidence is returning, especially in the mid-market segment and signs of a more dynamic dealmaking environment are already taking shape.
According to recent reports by KPMG and Baird, dealmakers are cautiously optimistic. While transaction volumes remain below 2021 highs, fundamentals remain strong, and there is growing consensus that Ireland is well-positioned for an upswing. At Vico Advisory, we’re seeing that momentum firsthand, particularly from international buyers and private equity firms targeting scalable Irish businesses.
2025: A Stabilising Market with Pockets of Strength
Overall M&A deal volume in Ireland increased by 4% in H1 2025. Despite a 51% decline in total deal value, the market has shown signs of stabilisation through Q2, with dealmakers shifting focus from high-growth ventures to profitable, well-managed businesses with recurring revenues and low customer churn.
Private equity activity has surged, with deal volume increasing by 39% year-on-year, though the aggregate value of these deals fell. This renewed momentum is particularly evident in sectors like:
Healthcare & Life Sciences: Continued strong demand for specialist care and diagnostics.
Financial Technology: Regtech and compliance platforms remain acquisition targets.
Enterprise Software: Scalable B2B SaaS solutions are still in high demand.
Engineering Services: Engineering consultancies with defensible margins and diversified client bases are attracting attention.
Business Services: Providers of outsourced professional services, especially those with technology-enabled solutions, are seeing increased buyer interest.
Cross-border transactions remained a hallmark of Irish M&A, with US and UK buyers continuing to lead in inbound investment.
Key Drivers of M&A Activity in Ireland
As we look ahead, several factors suggest that Ireland’s M&A environment will be increasingly favourable through 2026:
Succession Planning:Â A significant cohort of Irish SME founders are approaching retirement. With limited family succession options, M&A is becoming the preferred exit route.
Dry Powder in Private Equity: Despite macro headwinds, global private equity funds are still sitting on record levels of capital. The search for value is pushing them toward Ireland’s high-quality mid-market segment.
Digital Transformation:Â Companies that have invested in automation, AI integration, or digital platforms are commanding higher multiples.
ESG Compliance:Â ESG continues to shape deal screening and valuations. Acquirers are increasingly scrutinising sustainability metrics and governance frameworks.
2026: The Outlook Turns Positive
Looking forward, most analysts forecast a resurgence in transaction volume by late 2025, accelerating into 2026. Key reasons include:
Lower interest rates:Â Following on from a reduction of ECB key deposit interest rates to 2% in June 2025, its lowest level in more than two years. Most analysts expect a pause in July and a cut in September. Eurozone inflation is near its target, but geopolitics and trade barriers continue to pose hard-to-predict risks. This should improve deal financing terms.
Improved seller sentiment:Â As valuations stabilise, many business owners who paused exit plans are likely to re-engage.
Increased buy-side pressure:Â Strategic acquirers and PE funds have growing pressure to deploy capital and achieve growth.
The Irish market stands to benefit from its position as a tech-savvy, open economy with close ties to both the UK and EU. The mid-market, companies with €5–25 million in revenue and EBITDA between €1–5 million, remains a key focus area for acquirers seeking efficient, scalable businesses with strong teams.
What This Means for Founders and CEOs
If you're a business owner considering an exit or capital raise in the next 12–24 months, now is the time to begin preparing. Even in strong M&A years, transactions take time and require significant groundwork:
Understand Your Valuation Drivers:Â Profitability, growth trajectory, recurring revenue, and management team strength all impact value.
Ensure Legal and Financial Readiness:Â Clean financials and contract hygiene can accelerate deal progress and reduce risk of a re-trade.
Invest in Leadership:Â Buyers assess your ability to scale. Gaps in your leadership team can reduce deal attractiveness.
How Vico Advisory Supports Your Journey
At Vico, we specialise in guiding mid-market businesses through each stage of the M&A lifecycle. From early-stage positioning and valuation assessments to negotiation and post-deal integration, our senior team provides strategic, financial, and operational insight to help clients maximise outcomes.
We are seeing increased interest from international buyers in Irish B2B companies, particularly in tech-enabled services, software, and regulated sectors. If you're curious about your company’s strategic options in the current market, our Strategy Sessions provide a confidential, one-on-one opportunity to explore what's possible.
Conclusion
While the broader M&A market has faced headwinds in recent years, Ireland is set for a comeback. With capital poised for deployment, founders preparing early will be best positioned to capitalise on the upcoming wave of deal activity. The next 18 months will be critical, will you be ready?
Sources:
PwC. (2025). Global M&A Industry Trends: 2025 Mid-Year Update
EY. (2025). Global Capital Confidence Barometer
Reuters. (2025). ECB cuts rates for first time in years but keeps options open
IDA Ireland. (2025). Why Ireland
William Fry LLP. (2025). M&A Half-Year Review 2025
Deloitte. (2025). M&A readiness: A guide for sellers
KPMG. (2025). Deal readiness: Preparing your business for sale