Bridging the gap: CMS European M&A Outlook 2027
We are pleased to launch the CMS European M&A Outlook 2027, our annual analysis of the trends shaping the European dealmaking landscape. Produced in collaboration with Mergermarket, this year's report reveals a market characterised by resilience and cautious optimism, with dealmakers expecting activity to increase despite persistent economic and geopolitical challenges.
The European M&A market has once again demonstrated its resilience in the face of geopolitical and economic disruption. The latest edition of the CMS European M&A Outlook explores how dealmakers are navigating inflationary pressures, tighter financing conditions, evolving regulation and ongoing valuation gaps, while continuing to pursue strategic growth opportunities.
Based on a survey of 250 senior executives from corporates and private equity firms across Europe, the Americas and Asia-Pacific, the report provides unique insight into the factors shaping European dealmaking in the year ahead.
Key findings
- Dealmakers remain cautiously optimistic about Europe’s M&A prospects:
Half of respondents expect activity to increase in the next 12 months, while 29% anticipate declines. These figures represent a slight deterioration from last year, when 65% were expecting an increase and 24% a fall. - Distressed and turnaround opportunities will drive both buyers and sellers:
While 42% of respondents predict that non-core divestments will drive sell-side activity (the top response), 38% say distress-driven M&A will dominate – a finding mirrored by respondents’ expectations for buy-side drivers: undervalued targets and turnaround opportunities are both cited by 31%. - Financing difficulties and valuation gaps are the main obstacles to M&A:
Over a third of respondents (34%) believes that difficulties in arranging deal financing will be a major obstacle to M&A in the coming year, followed by buyer-seller valuation gaps (30%). Predictably, trade wars are also weighing heavily on dealmakers’ minds (26%, up from just 10% last year).
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