Oaklins Germany M&A Market Report 2025

A detailed analysis of the M&A market with German counterparts

Cross-border transaction slowdown significantly impacts German M&A Market the first half of 2025

Despite ongoing uncertainties, the German M&A market remained remarkably resilient in 2025. With 2,586 reported transactions, deal activity was only 6% below the prior-year level and continued to exceed the long-term historical average by a wide margin.

However, market behavior has shifted materially. A sharp decline in cross-border transactions, a significant increase in domestic-only deals, and the growing relevance of financial investors are reshaping the transaction landscape.

In the current M&A Market Report, we analyze, among other topics:

Shifting transaction dynamics: While outbound and inbound transactions declined, purely domestic deals increased by +32.8% — a clear indication of geopolitical and economic risk reallocation.

Role of Private Equity: Financial investors accounted for 38% of total market activity, reaching their highest share since 2022. Asset-light business models and favorable refinancing conditions continue to drive this trend.

Sector trends & deal structures: TMT remained the most active sector by volume, followed by Industrial Machinery & Components. Business Support Services recorded strong growth. The Healthcare sector once again proved resilient, accounting for six of the 30 largest transactions.

Macro trends & outlook: Location-specific factors such as energy prices, labor and non-wage labor costs, infrastructure deficits, and rigid bureaucracy are increasingly weighing on Germany’s international competitiveness. At the same time, the newly launched Germany Fund creates investment incentives totaling €130 billion.

Read our report to learn about the top 30 deals, the hottest sectors and the top countries where German companies have completed transactions outside their home country.

We wish you an exciting journey through our report and look forward to exchanging ideas with you.