As Ireland steps into 2026, the mergers and acquisitions (M&A) sector exudes a sense of measured optimism, according to a recent analysis from KPMG Ireland. Drawing from a survey of more than 150 experienced dealmakers, the outlook paints a picture of a market that’s weathered recent global disruptions and is now geared for steady progress.
KPMG also pointed out that while not as exuberant as the previous year, the consensus points to a competitive environment where strategic moves can yield significant rewards, bolstered by solid economic foundations and a keen eye on potential risks.
Reflecting on 2025, the Irish M&A scene was notably vibrant, with around 600 deals finalized across the island.
This surge represented a 40% rise in transaction numbers, far surpassing Ireland’s GDP growth of 18% and even outpacing broader global M&A value increases.
Key sectors like technology, media, and telecom (TMT) led the charge at 24% of deals, followed closely by industrials and engineering at 21%. Standout transactions included DCC’s divestiture of its healthcare arm to a European investor and Dalata Hotel Group’s €1.4 billion privatization.
These activities underscore Ireland’s appeal as a hub for innovation and cross-border investments, attracting players from the US, UK, and beyond.
Looking ahead, nearly all respondents—99%—foresee deal volumes either holding firm or expanding compared to last year, with 56% predicting growth and 42% expecting stability.
This positive vibe stems from robust corporate balance sheets and ambitions for expansion, though tempered by external pressures.
A striking 77% of participants intend to engage in M&A pursuits, a dip from 84% in 2025 but still indicative of strong intent.
Technology emerges as the frontrunner for activity, cited by 35% as the hottest sector, fueled by advancements in AI, cybersecurity, and software solutions.
Energy and infrastructure follow at 16%, with healthcare and pharmaceuticals at 13%, highlighting opportunities in renewables, digital health, and aging population needs.
Valuations are expected to remain resilient, with 90% anticipating steady or rising prices for quality assets.
Financing appears accessible, as 86% view it as sufficient, albeit with some hurdles in high-risk areas.
Due diligence has intensified, focusing on financials (86%), legal matters (77%), and commercial viability (72%), which may prolong timelines but ensures more robust deals.
Private equity is poised to dominate, with 48% expecting financial buyers to outpace strategics, leveraging ample dry powder for growth plays.
Challenges loom, including domestic consumer spending dips amid cost-of-living concerns, geopolitical tensions, and inflated tech valuations potentially bursting the AI bubble.
Regulatory shifts, such as stricter financial services oversight and delays in energy infrastructure approvals, add complexity.
Yet, opportunities abound: AI’s role in deal processes is seen as transformative by 61%, while sustainability drives energy transitions, like biomethane projects and decarbonization efforts.
In consumer markets, including food and agriculture, consolidation and export resilience offer bright spots, with examples like Kerry Group’s internal restructuring signaling adaptive strategies.
Industry professionals like David O’Kelly from KPMG emphasize the market’s maturity, noting that while timelines stretch due to thorough checks, capital abundance and a deal backlog position 2026 for dynamism.
Overall, Ireland‘s M&A ecosystem is now seemingly set to be pragmatic yet proactive, potentially rewarding those who navigate uncertainties with precision and foresight.