The M&A market in Spain has undergone a remarkable transformation throughout 2025. After analysing its evolution, we can affirm that the country has left behind two years of uncertainty and entered a phase of sustained growth. Between January and September 2025, approximately 1,400 mergers and acquisitions were completed — a 6% increase compared to the same period in 2024, according to TTR Data. This rebound is no coincidence. The ECB’s interest rates stabilised at 4.25%, while moderate inflation at 2.8% has created the perfect environment. In addition, the renewal of the Next Generation EU funds until 2026 injects liquidity and confidence into Spain’s business ecosystem.
Our reading of these figures reveals clear patterns. Although total imports fell by 10% year-on-year, this does not signal weakness but rather a redistribution toward the mid-market segment. Spain maintains its position as the fourth-largest M&A market in Europe, surpassed only by the UK, Germany, and France. However, it leads Southern Europe in resilience and adaptability. This privileged position is underpinned by strong fundamentals we have identified after evaluating hundreds of corporate transactions over the past year.
Key Drivers Behind the Recovery of M&A
From our perspective at Confianz, three factors explain the resurgence of the M&A market in Spain. First, the stabilisation of bank financing has been crucial. Corporate credit is flowing again under reasonable conditions, enabling well-positioned companies to access capital for strategic transactions. Second, business confidence has reached its highest level since 2022, with the European Commission’s economic sentiment index at 102 points.
The third factor is the most relevant for sophisticated investors: Spain has become a top destination for international funds. Investors from the United States, the United Kingdom, the Netherlands, and Germany are steadily increasing cross-border activity. This trend is not driven by short-term fashion but by real competitive advantages. The country offers regulatory stability, high-quality logistics infrastructure, and a strong ecosystem of specialised advisors that facilitate complex transactions.
We have also observed how family businesses are taking advantage of this favourable context to undertake generational transitions. The partial or total sale to private equity funds allows them to combine business continuity with professionalisation. This dynamic energises Spain’s mid-market and multiplies investment opportunities with predictable returns.
Sectors with Strongest Momentum in Spanish M&A
Our analysis of the M&A market identifies sectors with exceptional momentum. Technology leads with 25% of transactions recorded in 2025. B2B software, artificial intelligence, and cybersecurity attract the most sophisticated investor interest. The ongoing digital transformation of traditional industries fuels this structural demand. Spain boasts a mature tech ecosystem that attracts funds focused on accelerated scaling.
Energy and infrastructure account for 20% of total M&A activity. Renewable energy, power transmission, and storage dominate this segment. Recent deals involving Acciona and Enagás Renovable exemplify the potential of these assets. Europe’s green transition ensures sustained investment flows over the next decade. At Confianz, we consider this one of the most solid sectors for institutional portfolio diversification.
Healthcare, sports, and consumer experience are also gaining traction. Specialised clinics, holistic wellness, and immersive entertainment are becoming more attractive to investors seeking resilient, non-cyclical sectors. Education and corporate training are also consolidating rapidly. Digital platforms and professional academies respond to structural labour market needs that will persist regardless of macroeconomic conditions.
European Comparison and Outlook for the Spanish M&A Market
Data from Refinitiv confirms our thesis on Spain’s relative strength. While the Spanish market grew by 6% in 2025, Italy contracted by 3% and France by 5%, with Germany remaining flat. This divergence is not accidental. Spain stands out in technology and green transition sectors where other European markets show only moderate activity.
Private equity firms are intensifying their presence in the Spanish mid-market. Ardian, ProA Capital, Portobello, and Nazca Capital are expanding their portfolios through strategies focused on organic value creation. A key trend we identify is the increasing use of continuation funds, a strategy that allows firms to retain profitable portfolio companies longer, maximising returns through build-ups, spin-offs, and carve-outs.
Leading consulting firms share our outlook. Projections point to an 8% growth in transactions during 2026. We anticipate that cross-border strategic alliances will be a decisive factor. Moreover, ESG components and sustainability assessments will become fully integrated into due diligence processes — not due to regulatory pressure, but in response to genuine institutional investor demand.
The mid-market will continue to consolidate its role as the main driver of domestic investment. Family businesses in generational transition will keep seeking solutions that combine operational continuity with professional management. This dynamic creates exceptional opportunities for specialised funds and strategic buyers with a long-term vision.
At our firm, we reject the traditional opacity of the sector in favour of transparency and rigorous technical analysis. We verify every transaction with institutional diligence because we understand that investors require validated, trustworthy information.
Spain has definitively moved beyond the containment phase. The Spanish M&A market is entering a stage of sustainable growth, geared toward global competitiveness. The fundamentals are solid — and the opportunities are real for those who operate with discipline and expertise.
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