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CMS European M&A Study 2024: Optimism for M&A amid evolving market trends

The CMS Corporate/M&A Group is pleased to launch the 16th edition of the European M&A Study

Overview video of CMS European M&A Study 2024 findings

It's been a wild ride for mergers and acquisitions (M&A) around the world this year. Yet, despite the turbulance, we are seeing plenty of reasons to be hopeful about M&A activities in Europe for 2024. The resilience shown amidst economic and geopolitical ups and downs is truly inspiring. Our Study dives into an impressive 559 M&A deals that CMS advised in 2023 and reports on deal trends and current market standards on risk allocation. 

Key Findings and Takeaways


  • Resilient M&A Market: despite challenges, 2023 saw a slow but resilient M&A market. The outlook for 2024 remains optimistic.
  • Pricing Structures Shift: notable decrease in PPAs and earn-outs, indicating a shift towards more predictable deal terms. However, smaller transactions show continued pricing uncertainty.
  • ESG Considerations Grow: ESG due diligence is on the rise, signalling growing interest in sustainable and responsible investment. Expect growth due to increasing regulatory and reputational demands.
  • Rise in Strategic Investments: a significant presence of strategic investors both as buyers and sellers, indicating a strategic reshaping of business portfolios to adapt to market changes.
  • Risk Allocation Consistency: the period for operational warranties is narrowing but stays within 12-24 months, with liability caps under 50% of the purchase price.
  • W&I Insurance Use Steady: use of W&I insurance in large European deals remains stable, with the UK leading.
  • Impact of Geopolitical and Economic Factors: geopolitical and economic challenges are impacting deals but the Study notes a rebound in debt market confidence and potential boosts from election cycles.

Special features:


  • CMS European / US risk allocation comparison: headline analysis of the differing risk allocation on standard issues in European and US M&A.
  • CMS European regional differences: analysis of issues peculiar to one or more of the seven European regions covered.
  • CMS deal size analysis: data against three different deal values: deals <EUR 25m; deals from EUR 25m to EUR 100m; and deals >EUR 100m.
  • Regional commentary: special Commentary from CMS offices in LATAM, China, Asia Pacific and Middle East.
  • Historical comparison: 2023 data compared against both 2022 and the previous 12-year average.

We hope the CMS European M&A Study 2024 will again be a useful guide for you in a more and more challenging investment climate.

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Authors

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Nick Crosbie
Nick Crosbie
Partner
London
Tobias Grau
Dr. Tobias Grau
Partner
Rechtsanwalt
Stuttgart
Bruce Harvie
Bruce Harvie
Partner
Edinburgh
Yella Schick
Yella Schick
Associate
Rechtsanwältin
Stuttgart

Key contacts

Louise Wallace
Partner
Head of the CMS Corporate/M&A Group
London
T +44 20 7367 2181
Dr. Malte Bruhns, LL.M. (The University of Edinburgh)
Partner
Rechtsanwalt | Head of the CMS Corporate/M&A Group
Cologne
T +49 221 7716 355