Main trends in the Spanish M&A market in 2025

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Here are the main trends in the Spanish M&A market in 2025.

In Q1 2025, deal volume in Spain fell by 20-60% depending on the source, and by 60% in value compared to Q1 2024.

Up to the end of April, there were around 931 deals (€22.8 billion), down 20% in number and 18% in value compared with 2024.

The slowdown is due to global economic uncertainty, interest rates and geopolitical tensions, notably the threat of US tariff hikes.

With macroeconomic stability, falling inflation and potentially lower interest rates, 2025 is seen as a favorable year for the resumption of M&A activity.

Acquisition financing, particularly by private equity and private debt funds, is on the rise.

In the most dynamic sectors :

1-Real estate: the most active sector in early 2025 (204 deals in early February), despite a slight drop in volume.

2-Technology & digital infrastructure: growth in deals in data centers, AI and IT services.

3-Renewable energies: ramping up via offshore wind, biogas and green hydrogen, driven by a favorable energy context.

4-Banks & financial services: rumors of cross-border consolidation.

Private equity and VCs dominate the market: PE completed 264 deals in 2024 ($22 billion), with a stable market in Q1 2025 ($3.1 billion for 41 deals).

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Family businesses are becoming active again: 27% are considering an acquisition and 29% a partnership in 2025. Generational succession is a key driver.

Integrating AI into M&A processes - automated due diligence, risk analysis, anomaly detection - is becoming a must.  

The BBVA - Sabadell case: the government imposes a 3-5 year moratorium on the operational merger, protecting jobs, SMEs and local services, reflecting a posture of economic and governmental preservation.

The Spanish authorities are cautious about major banking operations, even though they are receiving support at European level.

In the short term, therefore, we can expect a structural slowdown with consolidation of volumes and macroeconomic pressure.

In the medium term, a recovery is expected from the second half of 2025, driven by more accessible financing, cutting-edge technologies and increased interest from financial and family investors.

The technology sector remains one of the driving forces behind M&A in Spain, despite the overall market slowdown.

It accounts for around 15% of M&A deals completed in Q1 2025, with a strong appetite for companies in SaaS, cybersecurity, cloud, AI and data.

Our preferred targets are profitable or high-growth startups.

Strategic acquirers and PE/VC funds are looking for technology companies with scalable, cash-generating or near-break-even models. Profitability or the trajectory towards it is now valued more than pure growth, a reversal from 2021-2022.

As well as Deeptech, AI and automation, i.e. companies specializing in generative AI and applied machine learning (healthcare, finance, HR), predictive analysis and business process automation, AI-enhanced collaborative tools.

With summer approaching, it's a good time to be a market watcher, as stocks are currently attractive.

Of course, there will always be Spanish corporate investors to drive the acceleration of digital transformation (banks, telecoms, manufacturers, etc.).

But above all, there are foreign groups (UK, US, European) looking for opportunities to consolidate or enter the Iberian market for the first time. In the case of North America, they are taking advantage of a weak euro and falling valuations to buy up Spanish tech nuggets.

Today, multiples are still temporarily down. Valuations in the tech sector have contracted by 10-30% depending on the segment (particularly SaaS), which is encouraging strategic buyers to return.

The sub-sectors are growing.

Verticalized Saas: sector-specific solutions for legaltech, medtech and proptech are highly sought-after.

Cybersecurity: strong growth, especially for SMEs, with deals in the €10-30 million range.

Cloud & IT infrastructure: consolidation underway, with a focus on resilience and data sovereignty.

Fintech: repositioning towards profitability; established players target niche fintechs.

Greentech and Climate tech: new entrants driven by impact funds and ESG requirements.

In recent deals (2024-2025), Spain's Adevinta finalized the sale of its non-strategic tech assets, EQT invested in a Spanish IT asset management software group, and several Spanish AI startups were acquired by American and European groups.

Without being prejudiced, we can expect deal volumes to pick up in the second half of the year, with a return to competition between funds and corporates.

The digitalization of the Spanish economy (supported by NextGenEU funds) is fuelling a rich pipeline of tech targets.

The start-up ecosystem remains active in Barcelona, Madrid, Valencia and Bilbao, with a dynamic M&A pipeline.

Here are just a few nuggets: Multiverse Computing, Quibim, Deale, Playtomic, Gaiarooms, Theker...

For the industry, here is a summary of strategic and dynamic sectors with a vision of M&A opportunities:

1. Automotive: shift to electric vehicles; strong presence in Catalonia, Navarre, Aragon (SEAT, Renault, Ford)
2. Agri-food: leading industrial sector; strong exports (oil, wine, fruit)
3. Aerospace & Defense: concentrated around Airbus (Andalusia, Madrid), drone business gaining momentum
4. Chemicals / Pharma: continued growth, especially generic pharmaceuticals and bioindustry (Catalunya, Basque Country)
5. Renewable energies: strong solar/wind + green hydrogen leverage (Andalusia, Extremadura)
6. Textiles / Fashion: the weight of giants like Inditext (Zara), but a decline in textile manufacturing
7. BTP / Construction: moderate recovery; focus on energy renovation and social housing
8. Industrial technologies: strong momentum in automation, IoT, industrial cybersecurity

Sources: cincodias.elpais.com, chambers, iberianlawyer, reddit, reuters, whitecase

Alvora Partners can also support you on the Spanish market with consolidated data on valuations that seem very accessible.

Got ideas? So do we!

Tell us about your plans and we'll guide you from Madrid to Barcelona.

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