AUSTRIA Trends and Developments Contributed by: Markus Fellner, Paul Luiki and Peter Blaschke, Fellner Wratzfeld & Partner
For 2025, KSV 1870 expects between 6,500 and 7,000 corporate insolvencies. Economic researchers predict low growth, but Germany – Austria’s most important trading partner – is like - ly to remain in a difficult situation, and there are no signs of a significant easing in cost pressures. Additionally, factors such as energy costs, con - sumer demand, and geopolitical developments will continue to have a major impact on busi - nesses’ economic situation and, consequently, on insolvency trends in the coming year. Looking to the Future The Austrian M&A market in 2025 is poised for continued strategic growth despite economic and geopolitical uncertainties. M&A Transac - tions may increase, especially due to an uptick in distressed M&A. Factors such as anticipated interest rate reductions and policy shifts in key global markets could also drive increased invest - ment activity.
The industrial and technology sectors are expected to maintain leadership in M&A trans - actions, supported by sustainability and digi - talisation initiatives. Private equity activity may expand if capital costs decrease, and cross-bor - der transactions could rise as firms seek inter - national growth opportunities. Furthermore, a surge in divestiture and carve-outs is expected as companies optimise their portfolios amid economic challenges. In summary, Austria’s M&A market remains dynamic and adaptable, with strategic invest - ments in key industries shaping its trajectory in 2025. While macroeconomic pressures persist, sectors such as industrials, technology and healthcare are set to drive future deal activity.
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