FRANCE Law and Practice Contributed by: Idris Hebbat, Camille Perrin, Franck Vacher and Nicolas Menard-Durand, C-Level Partners
C-Level Partners 27 rue Marbeuf 75008 Paris France Email: ih@cl.partners Web: www.cl.partners
1. Transaction Activity 1.1 Private Equity Transactions and M&A Deals in General Recent Trends The recent trends in private equity transactions and M&A deals more generally in France in 2024 and early 2025 are outlined below. Global trends affecting French market M&A volumes globally continue to decline, in par - ticular in the French market: numbers of transactions involving a French entity dropped by 29%, while val - ues increased 5%. This global trend is reflected in the French market, where fewer but larger transactions are being com - pleted. Sector-specific trends Between the first half of 2024 and the first half of 2025, aerospace and defence, chemicals, asset and wealth management, and power and utilities have all seen growth in deal values. In contrast, retail and consum - er, pharmaceuticals, automotive and industrials have experienced declines. Consolidation remains a strong trend, particularly in strategic industries, while technology, traditionally a driver of M&A, is going through a slowdown. 2025 Outlook While a gradual recovery is expected in 2025, eco - nomic and geopolitical uncertainty remains a brake. The M&A market in 2025 is heading for a cautious
recovery, marked by a concentration of transactions on large deals. Several indicators remain to be moni - tored: • growth in high-value deals; • decline in overall volume, particularly in France; • pressure on private equity and expected increase in sale; and • the key role of artificial intelligence and digital infra - structures. 1.2 Market Activity and Impact of Macro- Private equity firms and strategic acquirers are increasingly focused on investing in strategic sectors, such as healthcare, technology, and wealth manage - ment. These sectors are seen as being more resilient to economic downturns and offer the potential for long-term growth. Economic Factors Most Active Sectors In healthcare, add-ons are usually roll-ups of smaller entities, like individual facilities and centres, that are Interest rates and inflation finally came down during 2024. Economic growth in many markets remained stable. In response, deal investment and exit value increased. Lower interest rates will reduce the cost of acquisi - tion financing and allow private equity sponsors to return to leveraging their deals more effectively. Also, lower interest rates are expected to loosen the more easy to integrate into a larger network. Impact of Macro-Economic Factors
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