Mergers and acquisitions in Spain: a market in constant movement

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Xiomara Jiménez Rodríguez

Since the beginning of the year, the Spanish M&A market has shown a dynamic and promising pace. Up to May, impressive figures have been recorded, reflecting the attractiveness and growing activity in this area.

Despite an 18% decrease in the month of May (compared to the same time last year), during the same month of May, mobilised capital reached 4,089 million euros (according to TTR’s monthly report), demonstrating a steady flow of investments and transactions in the Spanish market.

The sector that has stood out notably in the area of mergers and acquisitions is the real estate sector. During the current year, it has been the most active, recording a total of 260 transactions. This can be attributed to the recovery and sustained growth of the real estate sector in Spain (after the global pandemic caused by Covid-19), as well as the growing demand for properties, both residential and commercial, an issue that we observe at AGM Abogados, both in our Real Estate and M&A departments.

In addition to the real estate sector, it is also worth mentioning the Internet, software and IT services sector, which ranks second in terms of transactional activity, with a total of 143 transactions. This sector demonstrates the rise of technology and digitalisation in the Spanish business environment, driving the demand for innovative and technological companies.

In relation to the IT services sector, Francisco Lacasa, Partner in the M&A area of AGM Abogados indicates that: “in our experience, it shows some of the highest multipliers in the transactions we handle at the firm, and we foresee that the number of deals in this sector will increase in the second half of the year“.

On the other hand, Private Equity and Venture Capital transactions have also played a prominent role in the Spanish M&A market. Up to May, 98 Private Equity transactions and 225 Venture Capital transactions have been registered. These figures may reflect the interest and confidence of foreign investors in the Spanish entrepreneurial ecosystem, backing companies at different stages of growth and strengthening the country’s entrepreneurial economy.

In general terms, the Spanish transactional market accounted for a total of 1,036 deals up to May, with an aggregate value of 25.58 billion euros. These numbers reflect the strength and dynamism of the M&A market in Spain, as well as its capacity to attract foreign investment and generate business growth opportunities.

As can be seen, the M&A market in Spain continues to boom. The data recorded up to May, according to the aforementioned TTR report, confirm its dynamism and potential, with significant capital mobilised and high transactional activity. The real estate and Internet, software and IT services sectors are leading the way, generating opportunities and challenges for investors and companies. For the M&A experts at AGM Abogados, this fast-moving market reflects the vitality and attractiveness of the Spanish economy, offering fertile ground for business growth and value generation.

For more information or to contact our M&A department, click here.

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