Irish M&A executives are optimistic that the volume of deal-making will increase in 2025, both in Ireland and abroad.

A KPMG survey of more than 150 Irish M&A execs shows respondents overwhelmingly anticipate that deal volumes will either increase or remain broadly stable in the coming year.

Some 84% plan to pursue mergers and acquisitions in 2025, up from 78% last year, and nine in 10 (90%) foresee stable or rising valuations in a shift from previous forecasts of downward pricing pressure.

Almost half of respondents predicted private equity buyers to be more likely to transact than strategic buyers in what is a significant shift in sentiment versus the past five years.

The responses also suggest that the market will marginally continue to be a buyer's market, and the growing number of neutral responses indicate that the valuation gaps seen in recent years are expected to narrow.

Furthermore, 80% of M&A leaders describe financing as either “readily available” or "adequate but with some constraints”, suggesting sufficient access to financing.

According to David O’Kelly, head of M&A at KPMG, the number of private equity transactions will increase this year both from fresh acquisitions and exits of existing portfolio companies.

"The level of domestic and international private equity dry power continues to rise, with Ireland seen to be an attractive destination for investment," he added.

Dealmakers expect sectors like technology (30%), energy and infrastructure (21%), and healthcare and pharmaceuticals (16%) to be the most active in 2025, with technology now leading in M&A deal value for over a decade.

Traditional diligence workstreams will continue to be carried out in 2025 and will be seen as crucial to unlocking deal value, according to the survey.

The top three forms of due diligence are finance (83%), legal and regulatory (74%), and commercial (66%).

While the use of IT/operational and ESG diligence is increasing, it is expected that these areas will continue to play a more significant role in transactions.

Finally, M&A leaders identified target awareness as the most critical factor enabling successful dealmaking in 2025, followed by the need for swift access to financing.

“The Irish M&A landscape in 2025 offers significant opportunities for well-prepared sellers,” said Mark Collins, partner and head of deal advisory at KPMG in Ireland.

“Echoing the survey, we are already seeing a very strong pipeline for 2025, across a broad range of sectors.

"The level of positivity demonstrates the confidence in Irish business to navigate an increasingly complex international environment."

(Pic: Getty Images)