<\/p>\n
\u00a0Mega-dealmakers shrug off geopolitical shocks<\/strong><\/p>\n According to CMS\u2019s 2027 European M&A Outlook, almost two-thirds of dealmakers expect the level of European M&A activity to increase over the next 12 months despite geopolitical turmoil. The Outlook was published in association with financial data firm Mergermarket<\/a>.<\/p>\n Russia\u2019s full-scale invasion of Ukraine continues to shape risk assessments, financing and sector priorities across CEE. The region recorded 526 M&A transactions worth EUR 20.6bn in H1 2026. Although deal volume fell 15% year-on-year, aggregate value rose 4%, pointing to a selective market in which larger transactions can still proceed where the strategic rationale and risk allocation are clear.<\/p>\n Ukraine\u2019s M&A market has likewise remained active but selective. In 2025, 132 transactions were recorded, broadly stable compared with 135 in 2024, while aggregate value fell 26.7% to EUR 739m. Notable activity was recorded in infrastructure, logistics and technology, while donor-backed financing and political and war-risk insurance continued to support investment [1]<\/a>.<\/p>\n Digitalisation and rising valuations<\/strong><\/p>\n According to respondents, digitalisation will be the principal buy-side driver of M&A in Europe over the next 12 months, with 33% citing this in their top two and 18% ranking this first, a result consistent with rising digital investment and artificial intelligence outlays. Turnaround opportunities come in second place overall (30%) while consolidation is third (27%).<\/p>\n In a reversal from our last study, when capital raising for expansion in faster-growing areas was expected to be the least important sell-side M&A driver, this factor comes out as the most significant this year, cited by 49% of respondents overall.<\/p>\n Financing pains<\/strong><\/p>\n Over half of respondents (58%) believe financing conditions in Europe will worsen over the next 12 months, reflecting interest-rate pressures and tightening credit standards in the region. However, this figure nevertheless represents a marked improvement from our previous survey, when more than three-quarters of dealmakers (78%) expected financing conditions to deteriorate.<\/p>\n Regarding key sources of capital, half of respondents believe private equity will be the most available financing source over the coming year, given the substantial stores of dry powder available to sponsors and the pressure on private equity firms to put that capital to work.<\/p>\n Southern pivot<\/strong><\/p>\n Though respondents continue to highlight Benelux and the UK & Ireland as the two regions that will see the highest M&A growth over the next 12 months, Southern European markets have recently climbed into dealmakers\u2019 estimations. Nearly a third (31%) of respondents rank Iberia in their top two for accelerating M&A, while 22% say the same of Italy, which last year ranked second bottom. With GDP growth rates in Southern Europe handily exceeding the euro area average, the region is affirming its reputation as a magnet for international M&A.<\/p>\n US influx<\/strong><\/p>\n Reflecting rising appetite among US buyers for European assets \u2013 where targets generally carry less steep valuations than their equivalents in the US might \u2013 most respondents (88%) say they have seen more US buyers active in the region over the past 12 months. Respondents expect this cross-Atlantic trend to continue: 95% anticipate seeing more interest from US buyers in European assets over the coming year.<\/p>\n Outlook for 2027<\/strong><\/p>\n Though megadeals took all the headlines in H1 2026, European M&A over the coming 12 months appears more likely to skew towards value investments. Buyers are on the lookout for turnaround opportunities and are emphasising creative solutions to close valuation gaps. Sellers, meanwhile, are focusing on core business resilience, including through divestments of peripheral units and capital raising to reinvest in higher-growth segments.<\/p>\n Commenting on how these trends are likely to affect transactions involving Ukraine, Tetyana Dovgan, Corporate\/M&A Partner<\/strong> at CMS Ukraine, says: \u201cUkraine\u2019s M&A market will continue to be driven primarily by strategic investors taking a long-term view. Transactions that do proceed are often agreed on broadly conventional commercial terms, although dealmaking remains highly selective. We expect investors to remain focused on businesses with strong fundamentals and a clear strategic fit, while access to financing and the assessment and allocation of war-related risks will continue to influence the pace and execution of transactions.\u201d<\/em><\/p>\n Maria Orlyk, Corporate\/M&A Partner<\/strong> at CMS Ukraine, adds: \u201cFrom a sector perspective, we expect Ukraine to reflect some of the broader European trends identified in the Outlook, particularly continued interest in defence, technology and energy. At the same time, the country\u2019s resilience and reconstruction needs should support investment in infrastructure and logistics. The pace of activity will depend heavily on access to financing and effective war-risk mitigation, but these sectors are likely to remain central to Ukraine\u2019s longer-term M&A outlook.\u201d<\/em><\/p>\n Read the full CMS European M&A Outlook 2027<\/strong> here: https:\/\/cms.law\/en\/int\/publication\/cms-european-m-a-outlook-2027<\/a><\/p>\n – END –<\/p>\n For further information, please contact:<\/strong><\/p>\n Darina Gordienko<\/p>\n E: darina.gordienko@cms-cmno.com<\/a><\/p>\n T: +38044 391 3377<\/p>\n Notes to editors:<\/strong><\/p>\n CMS<\/strong><\/p>\n Founded in 1999, CMS is an international organisation of independent law firms that offers full-service legal and tax advice. With 92 offices in over 50 countries across the world and more than 7,200 lawyers, CMS has longstanding expertise both in advising in its local jurisdictions and across borders. From major multinationals and mid-caps to enterprising start-ups, CMS provides the technical rigour, strategic excellence and long-term partnership to keep each client ahead in its chosen markets.<\/p>\n The CMS member firms provide a wide range of expertise across 19 practice areas and sectors, including Corporate\/M&A, Energy & Climate Change, Funds, Life Sciences & Healthcare, TMC, Tax, Banking & Finance, Commercial, Antitrust, Competition & Trade, Dispute Resolution, Employment, Labour & Pensions, Intellectual Property and Real Estate.<\/p>\n For more information, please visit cms.law<\/a><\/p>\n\n