NETHERLANDS Trends and Developments Contributed by: Herald Jongen, Maarten de Boorder, Samuel Garcia Nelen and Jelmer Kalisvaart, Greenberg Traurig, LLP
landscape for the remainder of 2024, where lower interest rates increase valuations and are generally favourable for attracting investment in technology-driven businesses. Globally, technology deals have in the course of 2024 remained somewhat of a bright spot, accounting for a large share of M&A transac- tions. However, values have declined as com- pared to previous years, largely due to fewer megadeals and lower valuations. This trend is mirrored in the Netherlands: according to PwC, while the number of deals in the tech sector increased by about 4% over the past year, deal values decreased by nearly 40%, reflecting cau- tion in larger deals. The technology M&A market in the Netherlands has shown a degree of resilience compared to global trends in 2023 and 2024, though it has faced some challenges similar to those seen worldwide. All in all, in the authors’ view, the Netherlands has performed relatively strongly, with deal volumes in the technology, media and telecommunications (TMT) sector seeing a slight increase even though the total value of deals The authors are cautiously optimistic that the general M&A markets will again gain momentum in 2025. Inflation slowed down in the Eurozone, and the European Central Bank (ECB) subse- quently started to lower interest rates in the course of 2024; this should have a positive effect on the lending capacity and investments of, in particular, private equity and venture capitalists, and notably also on the valuations of tech-driven companies. dropped significantly. Expectations for 2025 Alongside private equity and venture capital firms, the authors expect strategic buyers to
remain a driver of M&A activity in the medium term, as they adapt to the challenges and exploit the opportunities associated with the transition to digitalisation. Opportunities will also arise with the growing number of distressed assets, driven by the inflation seen in recent times and sub- sequent difficulties in obtaining financing. This opens opportunities for buyers who can move quickly. The authors are still mindful of the challenges that can arise from macro-economic and geopolitical factors, including in particular the (aftermath of) elections in multiple countries and regions (nota- bly, at the time of writing, the upcoming elections in the USA), and (the seemingly ever increasing) regulatory scrutiny, which may impact foreign investments. This will certainly continue to fuel the tendency towards M&A and investment pro- cesses being dragged out considerably, which has been the case over 2024 and is expected by the authors to continue throughout 2025. Over the past 12 months, several key trends have emerged in the technology M&A landscape in the Netherlands, reflecting broader global shifts while also showcasing unique regional characteristics. Tech investors are looking for value in AI Arguably the most notable driver of the tech space is the demand for commercial maturity and broader application of AI-based solutions. Such demand has not only fuelled innovation but also M&A activity. The more mature players are looking to acquire AI-related businesses to enhance their own businesses and stay ahead of the curve. Start- ups specialising in AI have attracted significant investment from major private capital investment
244 CHAMBERS.COM
Powered by FlippingBook