As the global mergers and acquisitions (M&A) market shows signs of slowing down, Europe surprises as a region where investor confidence is growing. According to the Boston Consulting Group (BCG) report ‘Mid-2025 M&A Insights’, the European confidence index in M&A activities has surpassed North America for the first time in two years.
Global sentiment remains 37 points below the long-term average, while European optimism stands at 85 points, indicating a growing interest from investors in the region despite geopolitical and macroeconomic uncertainties.
– This is a time for recalibration. The dust of optimism from the beginning of the year has settled, and what we are seeing now is a global M&A market facing uncertainties – stated Jens Kengelbach, director and partner and global leader for M&A topics, adding that Europe stands out, not due to strong growth, but because it is becoming a safe haven.
However, the increase in confidence is not yet reflected in transaction numbers. In the first half of the year, the value of M&A deals in Europe amounted to $201 billion, a 14 percent decline compared to the second half of 2024. On the other hand, North and South America recorded a 23 percent increase, totaling $724 billion, while the Asia-Pacific region saw a 43 percent decline due to geopolitical tensions and uncertain economic policies.
The heightened European optimism is driven by activity in the financial sector and insurance. Acquisitions such as Banca Monte dei Paschi’s offer for Mediobanca and Helvetia’s acquisition of Baloise demonstrate sector dynamics, despite the uncertain market. Europe’s stability, in contrast to political and regulatory turbulence in the U.S., makes the continent increasingly attractive for international capital.
BCG emphasizes that experience in managing M&A deals provides an advantage in uncertain times. Companies with long-standing acquisition practices create nearly double the value compared to those just entering the market, while experienced players adapt to shocks such as U.S. tariffs or changing capital flows through joint ventures and earn-out arrangements.
The industrial sector in Europe records a 62 percent increase in deal value, energy +54 percent, and healthcare +23 percent, supported by trends such as reshoring of production, decarbonization, and an aging population. In contrast, the consumer goods and raw materials sector has seen a nearly halved decline, indicating investor caution.
BCG’s conclusion is clear: while deal realizations lag, Europe is today a region where opportunities exist. Investors and managers with clear strategic discipline could leverage favorable conditions in the second half of 2025 to achieve significant business results.
