Inorganic growth within each economic bloc tends to intensify in periods of geopolitical tension. Advisers in the region are explicitly flagging stronger regional ties as a driver.
Sylvain Rousmant Financial Advisory Leader
Investing in Southern Europe: why it is emerging as the most attractive destination for international investors
Southern Europe is emerging as one of the most attractive M&A markets in EMEA (Europe, the Middle East and Africa), supported by strong investor interest, strategic cross-border transactions and new opportunities across key sectors of the economy.
Through our latest report, Investing in Southern Europe, explore the trends shaping deal activity across Italy, Spain, Switzerland, Türkiye, Portugal and Greece, as well as the key factors driving continued interest from strategic and private equity investors.
Building on the report's findings, Forvis Mazars in Greece also presents the Greece M&A Snapshot 2026, a focused overview of the key figures, investment trends and outlook for the Greek M&A market during the first half of 2026.
Building on the report's findings, Forvis Mazars in Greece also presents the Greece M&A Snapshot 2026, a focused overview of the key figures, investment trends and outlook for the Greek M&A market during the first half of 2026.
Southern Europe: a magnet for dealmakers
Southern Europe continues to strengthen its position as a leading destination for mergers and acquisitions, combining economic resilience, political stability and a broad pipeline of investment opportunities. Despite a modest decline in deal volume during the first half of 2026, total announced deal value surged by 37% year-on-year to €147.7bn, highlighting sustained investor confidence and the presence of larger, transformative transactions.
The region's attractiveness is underpinned by three key factors: a robust and often undervalued mid-market, a large population of family-owned businesses entering succession phases, and valuation multiples that remain competitive compared with Northern Europe and the United States.
Key figures
- €147.7bntotal announced M&A value in Southern Europe in H1 2026
- 1858announced across the region during H1 2026
- 41of total deal value generated by inbound investors from outside Southern Europe
Southern Europe's leading M&A markets
While Southern Europe shares common strengths, each market offers a distinct investment story. Across the region, strong domestic businesses, increasing cross-border activity and a growing presence of private equity continue to support dealmaking.
Greece: enduring appeal for investors
Greece continues to stand out as one of Southern Europe’s most international markets. Although aggregate deal value declined compared with the previous year, M&A volumes remain at their highest levels in two decades, underlining the resilience, dynamism and ongoing evolution of the market.
Portugal: resilient specialist market
Despite a slowdown in activity during H1 2026, Portugal continues to offer attractive investment opportunities. The country maintains strong prospects across technology, business services, hospitality and the mid-market segment, supported by a dynamic entrepreneurial ecosystem and growing appeal among international investors.
Italy: the region's M&A powerhouse
Italy was the standout market in the first half of 2026, recording 754 transactions with a total value of €87.1 billion, the highest level seen in the country over the past two decades. Landmark deals across the banking, TMT and pharmaceutical sectors reinforced its position as the leading M&A market in Southern Europe.
Türkiye: strategic assets attracting investors
M&A activity in Türkiye was characterised by fewer but significantly larger transactions. Deal value increased by 74% year-on-year, reflecting sustained investor interest in strategically important sectors, including industrials, energy and infrastructure. Domestic investors continue to dominate activity, supported by the country's strong manufacturing base and growing regional influence.
Switzerland: innovation-driven dealmaking
Switzerland remains a strategic hub for international investors seeking access to technology, healthcare and advanced industrial assets. Despite lower deal volumes, the country generated three of the ten largest transactions in Southern Europe during H1 2026 and continues to attract substantial inbound investment thanks to its reputation for innovation, stability and highly specialised companies.
Spain: value creation and mid-market strength
Spain continues to be one of Europe's most attractive destinations for inbound M&A. With 600 announced transactions valued at nearly €29bn, the market benefits from strong economic growth, attractive valuations and a highly active mid-market segment. Spain also stands out for its growing role in AI and technology-related investments, while private equity remains a major force behind large-scale transactions.
My working thesis is that intra-Southern-European M&A will grow faster than the headline inbound figures over the next 12 to 18 months, concentrated in fragmented sectors where a regional consolidator logic applies.
Sylvain Rousmant Financial Advisory Leader
Sector trends shaping the future of dealmaking
M&A activity across Southern Europe is increasingly concentrated in sectors benefiting from long-term structural trends such as digitalisation, healthcare innovation, industrial transformation and changing consumer preferences. While overall deal volumes have softened, transaction values have risen sharply, reflecting increased competition for high-quality assets.
Technology, media and telecommunications (TMT)
Deal value nearly doubled in H1 2026, reaching €28.4bn. AI-enabled businesses, digital infrastructure and software platforms continue to attract growing investor interest, particularly in Switzerland, Spain and Italy.
Industrials and chemicals
The sector recorded the highest deal volume, with 330 transactions worth €16.4bn. Activity was supported by major cross-border acquisitions and continued demand for industrial technology, infrastructure and environmental services.
Pharma, medical and biotech
Total deal value reached €19.4bn, making it one of the region's strongest sectors by value. Healthcare innovation, biotechnology and specialised life sciences businesses continue to attract international investors and private equity firms.
Financial services
Financial services led all sectors by deal value, reaching €43.5bn. Banking consolidation, particularly in Italy, continues to drive major transactions as financial institutions seek greater efficiency, scale and resilience.
Consumer
Investor interest remains strong across food production, premium brands and hospitality. The sector continues to offer attractive opportunities for strategic and financial investors, with Mergermarket data indicating significant potential for future M&A activity.
Private equity in Southern Europe
Private equity remains a central force in the Southern European dealmaking ecosystem. Although overall PE deal volume declined during H1 2026, aggregate deal value increased by 23%, driven by several high-profile transactions in pharma, industrials, infrastructure and consumer sectors.
International sponsors continue to see the region as an attractive investment destination thanks to favourable valuations, fragmentation across key industries and a steady pipeline of succession-driven opportunities. These characteristics create ideal conditions for buy-and-build strategies and long-term value creation.
Key figures
- 338Announced in H1 2026
- 48Total private equity deal value
- Five of the ten largest regional deals. Involved PE investors
What’s really drawing UK and US sponsors south is the combination of underpenetration and untapped potential.
Maurizio Galati Financial Advisory Director
Greece M&A Snapshot 2026: a closer look at the Greek market
Greece continues to offer opportunities for investors seeking access to a dynamic and increasingly international M&A market.
Building on the findings of Investing in Southern Europe, Forvis Mazars in Greece has developed a dedicated M&A snapshot highlighting the country's dealmaking activity during the first half of 2026.
The snapshot provides a focused overview of transaction activity and disclosed deal value, offering additional insights into Greece's position within the broader Southern European investment landscape.
Cross-border transactions are far from a secondary trend in the Greek M&A market. Combined with a highly active mid-market and a significant private equity presence, inbound international investment is a key driver of dealmaking activity.
Christos Pitsounis Partner
Greece at a glance
- 48Announced in H1 2026
- €2.52bn Disclosed deal value in H1 2026
-
9Reported company-for-sale stories
in H1 2026
Want to know more?
Christos Pitsounis Partner - Athens
Sylvain Rousmant Financial Advisory Leader - Milan
Maurizio Galati Financial Advisory Director - Rome
Pedro Mendes Silva Head of Advisory - Associate Partner - Lisbon
Antonio Rubino Partner - Head of Financial Advisory Romandie - Lausanne
Omercan Goncu Head of Transaction Services - Istanbul