The German M&A market proved to be resilient in 2025 despite macroeconomic uncertainty. Although the number of transactions has declined, deal values have risen significantly.
The main drivers were technology and infrastructure deals, particularly in the areas of artificial intelligence (AI) and the energy transition. This is shown by the results of our M&A Outlook.
2026 is expected to be a transitional year with moderate growth. From 2027 onward, we anticipate renewed momentum in the M&A market – driven by succession planning in the SME sector, private equity and growth expectations. Those who strategically plan and set priorities now will gain a competitive edge.
Valuation gaps, geopolitical uncertainties and persistently tight financing conditions remain the main hurdles. Successful players are responding with greater agility, enhanced due diligence and flexible deal structures.
Generative AI and agentic AI are still in their early stages for German companies and investors – yet the potential for M&A is significant: 76% already use AI in due diligence, and 83% expect AI to improve post-merger integration. However, data quality remains the biggest barrier (74%).
