As anticipated, M&A activity in the Spanish market rebounded in 2025 in terms of the number of completed transactions (+29.4%), ending the downward cycle observed in recent years, according to this IKEI report.
Based on early-year forecasts and the trend reversal observed in the last months of 2024, 2025 proved to be a year of recovery and growth for the national M&A market. The total number of closed transactions increased by 29.4% compared to 2024, reaching 2,845 deals, marking the highest level of activity since the historic 2021. This follows three consecutive years of decline in deal count (2022–2024), when only 2,199 transactions were completed.
By contrast, the average deal size for transactions with disclosed values (770 transactions, representing 27.1% of all deals) contracted by 29.3%, falling to approximately €81.6 million. This reduction is partly explained by the lower number of “megadeals” in 2025 (24 deals above €1 billion, compared to 35 in 2024). Notable transactions included Liberty Media’s acquisition of Dorna Sports (€4,200 million) and Iberdrola’s purchase of its Brazilian subsidiary Neoenergia (€1,920 million).
Analyzing deals by sector, Business Services, Real Estate, and ICT continued to lead M&A activity, accounting collectively for 41.5% of closed transactions in 2025 (21.9%, 9.9%, and 9.7%, respectively).
From a valuation perspective, Upper Middle Market transactions in the EU recorded a rise in the average deal multiple, reaching 8.96x EBITDA—0.13 points higher than the 2024 average—indicating early signs of recovery and a gradual alignment between investor and seller expectations.
Looking ahead to 2026, despite ongoing uncertainties—including macroeconomic volatility, rising geopolitical tensions, and persistent valuation gaps between buyers and sellers—the market is expected to remain active, potentially maintaining levels similar to 2025.
Several factors underpin this positive outlook: ample liquidity (particularly from private equity, under pressure to deploy funds and complete postponed divestments), signs of stabilization in financing conditions, and growing demand for transformation across multiple sectors and geographies. These elements create a favorable environment for transaction activity in the coming year.
Spain continues to consolidate its position as one of the most attractive investment destinations in Europe. The low and middle market remains a key driver, supported by a vibrant SME ecosystem that offers significant growth opportunities for both domestic and international investors.
For more detailed information on corporate buy-and-sell transactions, including sector-specific valuation multiples, please request a copy of IKEI’s M&A News via the subscription form.
(*) Upper Middle Market EU transaction multiples
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