A key theme that stood out in 2025 for Laura Gilbride, corporate finance partner at PwC Ireland, was the tangible integration of artificial intelligence (AI) into the mergers and acquisitions (M&A) narrative.
“It’s not just about acquiring AI companies, but also how AI can enhance due diligence and the M&A process, streamline integration and fundamentally transform business models,” she observes.
“Buyers who can fully understand and leverage the impact of AI gain a critical edge in competitive processes, while sellers who deploy it effectively can materially improve the efficiency of their own deal preparation.”
The security of information in an AI environment is paramount, she adds, so companies should be careful to ensure that they, and their advisors, have made the appropriate investment in enterprise-level AI solutions to ensure data security.
From PwC Ireland’s perspective, M&A activity in Ireland has been robust in 2025, with deal volumes showing a modest uptick versus 2024.
“Despite challenging global headwinds, sentiment proved resilient. While the Trump administration’s trade tariffs in the first half of the year prompted some delays and postponements, the M&A market weathered the uncertainty on the back of stabilising interest rates, slowing inflation and sustained international appetite,” Gilbride says.
“Inbound trade acquisitions increased year over year, and while foreign private equity [PE] deal volumes decreased, domestic PE deals remained stable. Although total volumes rose, overall values eased — with fewer megadeals and sharper valuation discipline — and activity concentrated in the mid-market.”
Sector-wise, financial services and software continue to be highly active from an M&A perspective, she continues.
“Consolidation remains a defining theme in financial and professional services, with roll-ups of insurance companies, wealth managers and accountancy practices continuing.
“As in recent years, the software sector has seen consistent deal activity. There were many fantastic success stories for Irish software entrepreneurs.
“The energy transition sector, from storage to grid services and data centre-related businesses, has seen strong interest, which will grow further.
“From a deal-size perspective, the sweet spot is still sub-€100m enterprise value, where trade and PE platforms compete for sticky, repeatable or recurring revenue businesses.”
Ireland broadly mirrors the global M&A rebound, but we punch above our weight in cross-border deals, according to Tom Noonan, corporate finance director at PwC Ireland.
“Our open economy and strong foreign direct investment base mean more inbound interest than many markets.
“Even with investors still cautious, Ireland’s position as a stable, English-speaking EU gateway, with innovative sectors and a pro-business ecosystem, keeps international buyers engaged — especially those seeking reliable EU access amid geopolitical volatility,” he says.
“PE remains active, supported by private credit that delivers certainty of funds and quicker execution. Overall, we’re moving with the global cycle, but Ireland outperforms on cross-border activity thanks to our accessibility and sector depth.”
Freddie Saunders, corporate finance director at PwC Ireland, has found that the geographic profile of international acquirers has remained broadly consistent in recent years, led by UK and US buyers.
“For UK buyers, maintaining an EU footprint and leveraging cross-border synergies continue to drive interest. US investors have retained confidence following the EU/US trade agreement, which has eased tariff-related uncertainty.”
Noonan notes that his clients are certainly facing additional challenges in due diligence, both in terms of breadth and complexity.
“Given the relentless threat landscape, cybersecurity resilience has moved from a technical check to a critical deal-breaker. There is also heightened focus on geopolitical risk exposure, especially regarding supplychain vulnerabilities and the impact of evolving trade policies,” he explains.
“Environmental, social and governance diligence has become another established arm of due diligence, assessing not just compliance, but genuine sustainability practices. Overall, diligence timelines and topics are extending.
“This is further emphasising the need for early and detailed preparation in advance of a process.” As we close out 2025, Gilbride’s outlook for Irish M&A activity in 2026 is cautiously optimistic. She reckons the momentum gained through the latter half of this year, driven by stabilised interest rates and improving seller sentiment, should carry forward.
Tom Noonan, corporate finance director at PwC Ireland.
“I anticipate continued strategic consolidation, robust PE deployment backed by growing pressure to deploy capital, and a sustained focus on key sectors: software, financial and professional services, energy transition and healthcare and life sciences,” she says.
“Global geopolitical developments, and their impact on trade policies, will remain key variables. They will shape investment appetite and deal structures, but Ireland’s strong fundamentals should continue to provide resilience.”
Photo: Laura Gilbride, corporate finance partner at PwC Ireland