Technology M&A 2025

BELGIUM Law and Practice Contributed by: Steven De Schrijver, 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 sub- stantial opportunities for value creation and transformative industry shifts in our era. This is particularly relevant given the upcoming enforcement of certain obligations under the EU’s Corporate Sustainability Reporting Direc- tive (CSRD). Specifically, large public interest entities and companies currently subject to the EU’s Non-Financial Reporting Directive (NFRD) must demonstrate compliance with these requirements by 2025. With sustainability considerations becoming more influential, Belgian companies are facing greater pressure to align their operations with these principles. This marks a clear shift towards integrating sustainability values into the core of business strategies and decision-making pro- cesses. Demonstrating a proactive stance in sustainability not only sets companies apart, but acts as a pivotal factor in fostering long-term goals such as establishing valuable supplier relationships, meeting rising customer expecta- tions and attracting acquirers seeking to bolster their ESG profiles. Forging partnerships across the value chain is crucial, enabling the scaling of progress, resource combination, 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 and accelerate growth. AI One of the key cornerstones for a successful deployment of an AI ecosystem is access to human capital in AI. Consequently, some target

There has been a noticeable increase in inter- est among corporate and financial players in pursuing carve-outs and strategic acquisitions, driven by the need to adapt to shifting global challenges such as technological disruption, cli- mate change, and economic uncertainties. While corporations are focusing on divesting non-core assets to align with their strategic transforma- tions, financial investors show a renewed inter- est in acquiring carved-out assets, aiming to cre- ate future value by reorienting these businesses. A particular shift from 2021 highlights the rising interest of corporate buyers in M&A as a tool for growth and resilience, supported by PwC’s finding that 45% of CEOs anticipate significant transformations to ensure their companies’ long- term viability. Looking ahead, corporations and financial inves- tors alike are strategising to balance expansion with financial stability. Corporations are increas- ingly considering joint ventures and partner- ships to facilitate international growth and find attractive acquisition targets in Belgium, while financial investors look to ramp up their acquisi- tions, often alongside family businesses or other financial entities. As traditional financing sources become less attractive, cost reduction and stra- tegic partnerships are taking centre stage, with both corporate and financial players expected to actively pursue M&A opportunities to fuel trans- formation and operational efficiencies in 2025. Despite some geopolitical and economic risks, the M&A market is anticipated to see an upturn, with corporations and financial investors well- positioned to adapt their strategies accordingly.

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