NETHERLANDS Law and Practice Contributed by: Maarten de Boorder, Rutger Sterk, Bas Vletter and Samuel Garcia Nelen, Greenberg Traurig, LLP
Greenberg Traurig, LLP Beethovenstraat 545 1083 HK Amsterdam The Netherlands
Tel: +31 20 301 7352 Fax: +31 612 612 432 Email: Maarten.deboorder@gtlaw.com Web: www.gtlaw.com/en/professionals/b/de-boorder-maarten
1. Transaction Activity 1.1 Private Equity Transactions and M&A Deals in General The indicators suggest that the private equity (PE) market is expected to continue its recovery and cau - tious growth throughout 2025, even though H1 2025 has been slow so far when it comes to deal activ - ity and fund raising. With inflation appearing to slow down slightly in the eurozone, the European Central Bank has maintained a relatively accommodative monetary policy, and interest rates have decreased further in 2025 and are now projected to remain stable or decrease further in 2025. This has had a positive effect on the lending capacity and investment case of, in particular, PE funds, as well as on the valuations of investee companies. In addition to the dry powder still available in the market, it is expected that this will increase the willingness of PE funds to go after targets in a way that will gain traction on the sell side, despite the exit backlog that is currently being experienced in the PE market. Ongoing geopolitical dynamics, now including the trade tariffs imposed by the United States and the international reaction thereto, are continuing to fuel uncertainty in the markets. This will also have an impact on the PE industry as it raises challenges for the global economy, and these uncertainties need to be priced in. However, the policies of the United States are also expected to have a positive side, as it seems the EU is “stepping up its game” in terms of investing in its economies and building up more elaborate defence capabilities, which will fuel sub -
stantial growth of the European defence industry and its supply chains. In particular, businesses that are active in these supply chains seem very interesting for PE sponsors, which are still not keen on investing in companies that produce (assault-type) weaponry. Key sectors driving deal flow in 2025 include the defence industries, energy transition (with the focus on “clean energy” driving break-up/divestment of non-core assets), infrastructure, artificial intelligence, and technology, with valuations in these areas remain - ing robust. The pressure on PE funds to return capital to investors persists, leading to increased competition for high-quality assets. Consumer and retail remain more challenging due to margin pressures. However, deal-making is expected to remain more complex than in the peak years, with issues including extend - ed timelines (due to more rigorous due diligence), the challenging financing environment, relationship build - ing and ongoing geopolitical uncertainties, as well as additional regulatory intricacies. 1.2 Market Activity and Impact of Macro- Economic Factors While the Dutch and international M&A landscape in 2025 presents promising opportunities, there are obvi - ous challenges that the market will face. Geopolitical factors, such as ongoing conflicts and tensions, relat - ed restrictive measures and sanctions, supply chain disruptions, export controls and tariffs will impact businesses and their valuations, and thus also M&A strategy. This impact will be felt in – among other sec - tors – advanced semiconductor manufacturing and, more generally, the (deep) tech sector.
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