AUSTRIA Trends and Developments Contributed by: Markus Fellner, Paul Luiki and Peter Blaschke, Fellner Wratzfeld & Partner
and valuation now inherently depend on verifiable sus - tainability and supply chain data. A main impact on M&A transactions under Austria’s Industrial Strategy 2035 is the necessity to adopt a broader approach towards due diligence. Rising numbers of insolvencies According to a study by the Austrian creditors’ protec - tion association (KSV 1870), in 2025, a total of 6,810 companies in Austria had to file for insolvency, averag - ing 19 corporate bankruptcies per day. This continues the trend of an increasing number of insolvency cases. The main drivers of insolvency remain in the trade sector, the construction industry and the hospitality sector. In addition, there were 111 major insolvencies with liabilities exceeding EUR10 million. By compari - son, there were only 86 such cases in 2024. However, the number of insolvencies with individual liabilities exceeding EUR200 million decreased from 11 cases in 2024 to four cases in 2025. It is also noteworthy that around half of all major insolvencies (liabilities exceeding EUR10 million) are directly related to the real estate sector – ie they are located in the construc - tion or property/housing sectors. Despite the slight increase in the number of insolven - cies, total liabilities have decreased by 55% compared to 2024, reaching a total of EUR8.48 billion. Furthermore, 54,600 creditors (+8.5% compared to 2024) and 21,900 employees (-26% compared to 2024) are affected. The largest insolvency of 2025 was recorded by SIGNA Prime Capital Invest GmbH, with liabilities amounting to EUR870 million. This explains the mas - sive decrease in liabilities compared to 2024, as the four largest insolvencies had liabilities of around EUR2 billion each.
For 2026, KSV 1870 expects similar developments, subject to possible changes in the economic environ - ment. Economic researchers predict little to moderate growth, but Germany – Austria’s most important trad - ing partner – is likely to remain in a difficult situation, and there are no signs of a significant easing in cost pressures. Additionally, factors such as energy costs, consumer demand and geopolitical developments will continue to have a major impact on businesses’ economic situation and, consequently, on insolvency trends in the coming year. Looking to the Future The Austrian M&A market in 2026 is poised for con - tinued strategic growth despite economic and geopo - litical uncertainties. M&A transactions may increase, especially due to an uptick in distressed M&A. Contin - ued stability in interest rates could also drive increased investment activity, as it conveys stability to market participants. The industrial and technology sectors are expected to maintain leadership in M&A transactions, supported by sustainability and digitalisation initiatives. Private equity activity may expand if capital costs decrease, and cross-border transactions could rise as com - panies seek international growth opportunities. Fur - thermore, a surge in divestitures and carve-outs is expected as companies optimise their portfolios amid economic challenges. In summary, Austria’s M&A market remains dynam - ic and adaptable, with strategic investments in key industries shaping its trajectory in 2026. While macro - economic pressures persist, sectors such as industri - als, technology and healthcare are set to drive future deal activity.
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