The Netherlands Is Europe’s M&A Hotspot

Compared to Q3 2020, deal flow in The Netherlands has increased 60 percent. TMT, Industrials and Services are having the biggest impact on this growth, with private equity (PE) dry powder driving deals. Regulation here has also helped spark a flurry of dealmaking activity.

As the COVID-19 global health crisis begins to fade in many parts of the world, sectors are opening again. Valuations and competition are high — and increasing — for hot sectors like Logistics and Materials. Overvalued sectors remain lukewarm. TMT deals and Consumer Products have a higher EBITDA than before, due to increasing turnovers.

Real Estate and Retail are lagging, with not many projects coming to market. (For a detailed forecast on all the active sectors in EMEA and the rest of the world, check out the Q3 2021 SS&C Intralinks Deal Flow Predictor — just released.)

While last year’s remote-work environment impacted the pace of deal flow, transactions are now moving a lot more quickly. Competition is creating pressure for deal teams to move quickly through due diligence.  

In terms of sectors, TMT and Industrials are the ones to watch. The hottest ones right now are Infrastructure, Renewables, Materials, Packaging, Logistics and Pharma.

With much of the world going back to “normal” and companies mulling remote, hybrid and decentralized work environments for their staff, most advisors are very positive for H2 2021. The Netherlands’ ability to fully vaccinate the population and keep cases of COVID-19 down will only help bolster this sense of optimism.