BELGIUM Law and Practice Contributed by: Steven De Schrijver and Carl Dotremont, Allegiance Law
1. Market Trends 1.1 Technology M&A Market
1.2 Key Trends ESG Considerations
Formerly considered a risk to be avoided, ESG is currently recognised as one of the most substantial opportunities for value creation and transformative industry shifts in the current era. This is particularly important given the upcoming enforcement of certain obligations under the EU’s Corporate Sustainability Reporting Directive (CSRD). Specifically, large public interest entities and companies currently subject to the EU’s Non-Financial Reporting Directive (NFRD) must demonstrate compliance with these require- ments by 2025. With sustainability considerations becoming more influential, Belgian companies are facing greater pres- sure to align their operations with these principles. This marks a clear shift towards integrating sustain- ability values into the core of business strategies and decision-making processes. Demonstrating a proac- tive stance in sustainability not only sets companies apart but also acts as a pivotal factor in fostering long-term goals such as establishing valuable supplier relationships, meeting rising customer expectations, and attracting acquirers seeking to bolster their ESG profiles. Forging partnerships across the value chain is crucial, enabling resource combination, the scaling of pro- gress, and the enhancement of data gathering and protocols in pursuit of sustainable initiatives. Such partnerships can be forged through strategic M&A transactions to further increase customer penetration One of the key cornerstones for successfully deploy- ing an AI ecosystem remains access to top-tier human capital in AI. Buyers increasingly target acqui-hires of early-stage enterprises (often with minimal or no revenue) purely to secure skilled talent. Belgium, renowned for its world-class human capital from institutions such as the Interuniversity Microelectron- ics Centre (IMEC) (see 5.1 Trends: Spin-Offs ) and KU Leuven, continues to solidify its position as a pivotal global hub drawing intense international attention − not just for cutting-edge innovations but as a prime destination for technology and life sciences M&A. This and accelerate growth. AI and Life Sciences
There has been a noticeable increase in interest among corporate and financial players in pursuing carve-outs and strategic acquisitions, driven by the need to adapt to shifting global challenges such as AI- driven technological disruption, climate change, and economic uncertainties. While corporations continue to focus on divesting non-core assets to align with their strategic transformations − including bolster- ing AI capabilities and sustainability goals − financial investors demonstrate a sustained appetite for acquir- ing carved-out assets, aiming to unlock future value through reorientation and buy-and-build strategies. This trend builds on the post-2022 recovery, with cor- porate buyers increasingly leveraging M&A for growth and resilience, as evidenced by PwC’s 28th Annual Global CEO Survey finding that 42% of CEOs believe their companies will no longer be viable in ten years without significant transformation. Looking ahead into 2026, corporations and financial investors are prioritising a balance between expansion and financial resilience amid persistent valuation gaps and financing headwinds. Corporations are ramping up joint ventures, partnerships, and acquisitions of attractive Belgian targets (particularly in AI, life sci- ences and biotech) to drive international growth, while financial investors − often partnering with family offic- es − plan aggressive acquisition pipelines. Traditional bank financing remains constrained by high interest rates and ESG scrutiny. As such, alterna- tive funding, cost optimisation and strategic alliances are centre stage; 93% of corporate buyers and 90% of financial investors anticipate an increase in M&A activity in the coming year. Despite geopolitical risks, trade tensions and eco- nomic volatility, the market is poised for further upturn − with 85% of European deal-makers planning M&A and 50% expecting volume growth, led by Benelux. As such, corporates and investors are well positioned to harness technology M&A for transformative effi- ciencies and a competitive edge in 2026.
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