AUSTRIA Law and Practice Contributed by: Clemens Hasenauer and Albert Birkner, CERHA HEMPEL
1. Trends 1.1 M&A Market
resenting an increase of approximately 4% compared to 6,522 cases in 2024. The sectors most affected were financial and other services, followed by trade and construction, with hospitality also recording a relatively high number of insolvencies. Compared to 2024, insolvencies increased slightly, though the year- on-year rise was relatively moderate. High financing costs stemming from persistently high interest rates, elevated energy costs, geopolitical uncertainties and stricter regulatory requirements will continue to weigh on Austria’s market dynamics in 2026. Whether the M&A market will see a recovery in 2026 remains uncertain. Interest rate cuts, reduced regulations and a pro-business stance by the US gov - ernment could support transactions, while significant capital reserves in the private equity sector (“dry pow - der”) could add further momentum. Despite the high transaction volume recorded in 2025, it remains to be seen whether this development will prove sustainable or is merely a one-off driven by a small number of exceptional transactions. Targeted measures in key industries could help restore investor confidence in the long term. Additionally, ESG (environmental, social and govern - ance) issues remain important, especially for institu - tional investors. 1.3 Key Industries In terms of the number of transactions, the industrial sector was once again the most active industry with 66 deals (compared to 83 in 2024). It was followed by the TMT sector with 48 deals and the consumer products and retail sector with 37 deals. Regarding disclosed transaction volume, there was a significant shift in the disclosed transaction volume in 2025, primarily driven by the three mega-deals. Life sciences and chemicals led the market with a volume of EUR8.9 billion, largely due to the Nova Chemicals mega-deal. Financial services followed closely with EUR8.4 billion, driven by major outbound acquisitions by Erste Group and VIG.
In 2025, the Austrian M&A market recorded 221 trans - actions with Austrian involvement, a 9.8% decrease from 245 in 2024. While the number of transactions declined, the transaction volume increased signifi - cantly. Total transaction volume amounted to EUR19.6 billion, marking an 18-year high and a 292% increase compared to the EUR5.0 billion recorded in the previ - ous year. This sharp rise in transaction volume was mainly driven by three mega-deals, each exceeding EUR1 billion, which together accounted for approxi - mately 90% of the total annual transaction volume. Unlike 2024, when no mega-deals were recorded, the Austrian M&A market therefore showed a clear improvement in this respect. At the same time, the overall level of market activity remains relatively sub - dued, as reflected in the lower number of transactions. The number of outbound M&A transactions (where Austrian investors sought to acquire foreign targets or their shares) decreased to 77 (34.8%) in 2025 from 90 (36.7%) in 2024. Foreign investors acquiring Austrian targets accounted (inbound M&A transactions) for 105 deals (47.5% of total activity). While this was slightly lower than the 107 deals in 2024, the interest from abroad remained relatively constant. Inner-Austrian deal activity fell to 39 transactions (17.6%) from 48 in 2024. 1.2 Key Trends Strategic investors remain the driving force of the Aus - trian M&A market, accounting for the vast majority of transactions. In 2025, 201 out of 221 transactions involved strategic investors, compared to 220 in 2024. The involvement of financial investors (private equi - ty or venture capital firms) remained broadly stable overall and in fact declined slightly from 25 transac - tions (2024) to 20 transactions (2025). Accordingly, the upward trend observed in 2024 was brought to a halt in 2025. Therefore, private risk capital remains a niche phenomenon in Austria, accounting for just 10% of the total number of transactions. In 2025, the trend of rising company insolvencies continued for the fourth consecutive year. A total of 6,809 companies filed for insolvency in Austria, rep -
47 CHAMBERS.COM
Powered by FlippingBook