BELGIUM Law and Practice Contributed by: Michel Bonne, Hannelore Matthys and Virginie Lescot, Van Bael & Bellis
Van Bael & Bellis Glaverbel Building Chaussée de la Hulpe 166 Terhulpsesteenweg B-1170 Brussels Belgium Tel: +32 (0)2 647 73 50 Fax: +32 (0)2 640 64 99 Email: brussels@vbb.com Web: www.vbb.com
1. Trends 1.1 M&A Market
Private equity players (both international and local) in particular continued to be active (although less compared to previous years) in the Belgian M&A market. 1.2 Key Trends As is usual in Belgium, the SME segment of the market accounted for the majority of deals. This is due to the fact that family-owned business - es are still at the heart of the Belgian economy (and even listed entities are often still controlled by a group of family shareholders). There has been continued interest from international pri - vate equity players in the Belgian market (see also 1.1 M&A Market ) and buy-and-build strat- egies continue to be many investors’ preferred route. It should be noted that ESG has become an increasingly important topic for investors and the newly transposed CSRD will further reinforce it as a critical factor in investment decisions. For “big-ticket” transactions, securing warranty and indemnity insurance has become common market practice (whereas until a few years ago this was still exceptional in the Belgian M&A market, which can probably be explained by the fact that the market is characterised by small and mid-sized transactions).
Historically, M&A activity in Belgium has shown a consistent upward trajectory, yet this trend has experienced occasional interruptions due to various factors including global geopolitical and macroeconomic challenges. A year-on-year rise in Belgian M&A activity is expected in 2025, although deal volumes are projected to remain below the peak levels seen during the post-pan - demic period. While there are expectations for economic growth despite increased interest rates, the M&A landscape continues to be influenced by chal - lenging conditions such as the ongoing war in Ukraine, energy transition challenges, an aging population, turbulent international dynamics and adoption of economic tariffs, and struc - tural labour market issues. The formation of the new Belgian federal government and the Fed - eral Coalition Agreement for 2025–2029 (which focuses on addressing key economic, social, and environmental challenges and aims to introduce significant reforms), are expected to present both challenges and opportunities that could impact M&A activity in Belgium.
225 CHAMBERS.COM
Powered by FlippingBook