The Spanish M&A market is at an exceptional moment, with great opportunities in thriving sectors and a generation of entrepreneurs looking for alternative solutions to the lack of succession and liquidity streams caused by the pandemic.
Growth of M&A Transactions
In October 2020, pre-pandemic levels of M&A activity were restored in Spain, driven by low interest rates and a high level of savings.
With more than 1,200 transactions carried out in the first half of 2021 and 56 billion euros mobilised from the United States, the United Kingdom and France, Madrid accounted for more than half of these operations.
Sectors with the Greatest Opportunities
From the end of this year until 2023, look to the sales of an overflow of companies with unsustainable liabilities and the added pressure of investors’ need to rescue strategic resources from companies with forward-looking and success-oriented management teams.
Retail, energy, media and hospitality will experience high levels of disinvestment. The industrial sector, with a significant decline in transactions, as well as tourism and leisure, both hard hit by the pandemic, will see the greatest opportunities.
Other promising sectors include student and elderly care homes, coliving solutions, pet care, life sciences, freight transport and the specialised IT sector, all of which will play a major role in 2021. Potential other sectors that share as of yet undiscovered high added value may include: plastics processing, waste management and professional services.
There is significant activity from Spanish private equity funds, with growth funds and German and Belgian funds making strong bids for some assets.
On the financing side, deals have been closed with moderate leverage but without lack of liquidity, as investors are willing to do full equity deals and then leverage up.
ECOVIS Grosclaude & Partners promotes operations in the middle market segment, seeking investors for leading Spanish niche companies and non-successionary entrepreneurs and supports Central European investors with growth and consolidation objectives in Spain.
If you are looking to invest in Spain, our M&A consultants will be happy to help you locate the most suitable targets and accompany you throughout the process with our turnkey services.
ECOVIS Grosclaude & Partners provides intermediary services in M&A, Audit and Transfer Pricing.