Stephen Keogh

The law firm has published its half-year report on Irish M&A activity in conjunction with Mergermarket.

In the first six months of the year, there were eight deals worth more than €250 million each, including five deals exceeding €500 million — the same number as in the whole of 2023. The mid-market was still dominant, with 84 per cent of deals between €5 million and €250 million.

There were 110 inbound transactions into Ireland worth a total of €16 billion, and 15 of the 20 largest deals were cross-border transactions.

Private equity made up 19 per cent of all deal activity, with volume down 19 per cent.

The technology, media and telecommunications (TMT) sector accounted for 79 per cent of total deal value and over a quarter of deal volume.

Stephen Keogh, head of corporate/M&A and managing partner-elect at William Fry, said: “The first half of 2024 has seen two very different trends in the Irish M&A market.

“Continued geopolitical tensions, economic caution and a downgraded IMF growth forecast have accompanied a drop in transaction numbers by 20 per cent compared to the same period in 2023.

“Dealmakers have appeared reluctant to commit to transactions in the current uncertain political climate, with high-profile elections taking place across the globe in 2024.

“Despite this, two major tech sector deals boosted total deal value to €17.8bn, a 207 per cent year-on-year increase.

“Although high-value transactions, led by Apollo Global Management’s €10.1bn deal with Intel, are driving this surge, it is mid-market deals, worth €5m to €250m, that made up 84 per cent of deal volume.”

Looking ahead, he added: “The outlook is uncertain, with both positive and negative factors at play.

“On the positive side, the economic outlook is improving, highlighted by the ECB’s first interest rate cut in five years announced in early June. Other central banks in the UK and US are expected to follow suit, contributing to the IMF’s optimistic growth forecast.

“Political uncertainty may also ease following the US presidential elections in November. However, Ireland’s upcoming elections and the new foreign direct investment screening regime introduce unpredictability, complicating deal timelines.

“While making precise M&A forecasts is challenging, resilience in many market sectors suggests that as economic and political volatility diminishes, broader confidence should return.”