Dealmakers are cautiously optimistic about the outlook for M&A in 2025 – both in Ireland and internationally.
Certainly, there are reasons to be positive. The global economic picture is starting to look a little brighter, with central banks in North America and Europe now moving to ease monetary policy, reducing the cost of capital. The IMF sees growth accelerating in Europe in 2025 compared to 2024 – including a jump to 2.2% growth in Ireland from a 0.2% contraction this year – and has recently raised its forecast for the US too.
Political uncertainties have also begun to ease. While 2024 was the year of elections – with more than half the world’s adult population eligible to vote – the political direction of travel in most countries is now clearer.
It is also possible that pent-up demand for dealmaking may be released from both corporations and private equity firms. The latter continues to hold record levels of undeployed capital that needs to be invested.
The counterargument is that the geopolitical environment is uncertain, particularly given President Trump’s intention to reset US relations across the globe. The President’s intentions on tariffs, for example, could have a dramatic effect on global trade and investment. Elsewhere, conflicts in Ukraine and the Middle East remain a concern.
However, given the stable political environment in Ireland, the potential in the renewables sector, the ongoing strength of the TMT market and consolidation in areas such as business services, there is the genuine optimism for a further uplift in Irish dealmaking in 2025.
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