Private Equity: In Position

Private Equity, The Netherlands | Report | Q1 2025

M&A activity in the Netherlands experienced a solid start in 2025, continuing the momentum from late 2024.

M&A activity in the Netherlands

In the first quarter of 2025, which was prior to the onset of market turbulence in the first week of April triggered by escalating U.S. tariffs, M&A activity in the Netherlands continued at a high level, building on the strong performance in Q4 2024. Q1 2025 experienced a total of 278 deals — slightly above the three-year quarterly average of 270. Moreover, it marks a 29% YoY increase versus Q1 2024 (216 deals).

A key driver behind this continued momentum was the increasing activity from strategic buyers, with 239 deals completed in Q1 2025. This trend builds on the confidence seen in Q4 2024 highlighting their appetite for growth via acquisitions. PE was involved in only 39 deals this quarter. While overall PE activity remains relatively modest, we see that PEs are actively preparing or launching some sale processes reflected in a growing number of pitch invitations and a healthy pipeline of (Oaklins) mandates currently in preparation.

Valuation levels in Europe remained stable in the first quarter of 2025, with a median LTM EBITDA transaction multiple of 9.9x, unchanged from Q4 2024. This consistency reflects sustained buyer confidence in the market in Q1 2025 and the ongoing perception that there is strong appetite for high quality assets.

European leveraged finance market

The European leveraged debt market is entering a new phase. While headline activity remains strong, trends diverge across segments. For Dutch borrowers, Q1-25 reveals important signals about pricing, lender behavior, and the resilience of direct lending.

The leveraged loan market started Q1-25 on similar footing to 2024, but momentum slowed as the new reality of tariffs and global uncertainty set in. While headline figures from the European syndicated leveraged loan market were strong — total volume reached €99.8bn in Q1-25, the highest on record according to LCD News — the underlying story reveals more nuance.

M&A activity has maintained strong momentum at the start of 2025, driven largely by (PE-backed) strategic acquisitions. With interest rates declining, financing for acquisitions has become more affordable, making acquisitions an increasingly attractive growth alternative. While the global tariffs imposed by the president of the United States have created market turbulence at the end of Q1, we’ve seen limited disruption in deal activity so far, only affecting deals with companies directly or significantly impacted by the tariffs. For the majority, parties are continuing to work collaboratively towards signing and/or closing. Although some planned sale process will be (temporarily) on hold, we expect this overall positive trend to persist, with deal activity picking up in sectors more directly impacted as soon as the scope of the tariffs becomes clearer. TIJN BASTIAANS, PRIVATE EQUITY COVERAGE

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