Germany – The Profile Is Shifting

2025 was a year of transition for M&A in Germany: despite tariffs, economic weakness, and political uncertainty, deal activity remained at a steady level. 

Deal sentiment was defined by cautious optimism amid structural transformation and macroeconomic headwinds, with a notable shift toward larger, higher-value strategic deals despite a decline in total transaction volume. Germany continues to be a key region for M&A activity globally, taking sixth position for most active target nation by deal value, up from ninth last year. 

Private capital activity gained momentum, driven by the need to deploy substantial dry powder and the pursuit of operational value creation. Dealmakers were balancing transformation pressure (digitalisation, decarbonisation, defence) against persistent uncertainties (geopolitics, financing costs). Financial sponsors were directly involved in nearly 70% of German M&A deal value recorded in 2025, solidifying the role of private capital in the M&