Investor interest in Spain’s M&A market is growing, with the sector seeing an 8% increase in 2024. Technology, healthcare, and food are attracting attention, and AI is driving innovation across industries.
I spoke with Fabio Lupo, M&A Development Director at ONEtoONE Corporate Finance, to discuss his career, current trends in the M&A market, and the industries best positioned for investment in the coming years.
Q: Tell me a little about your personal and professional background, and how you got to where you are today?
I joined ONEtoONE through an Erasmus Placement Scholarship. After finishing my degree, I became part of the team in the M&A Development Department, where I am now the Director.
We support our network of Partners, operating in more than 30 countries, throughout the execution phase of each mandate, including the search for and engagement with potential investors. Additionally, we assist in the acquisition process by analyzing industries and identifying sectors poised for consolidation.
Q: What are the current trends in the M&A market in Spain?
Overall, M&A activity in Spain has slowed down in Q1, 2025. After several strong years with high deal volume and valuations, the market has cooled due to economic and geopolitical uncertainty.
Looking ahead, 2025 could be a pivotal year, particularly for private equity. Firms will need to sell off assets acquired during the pandemic years, which may drive an increase in M&A activity across the country.
Q. Which sectors do you see as the most promising for investment in the coming years, and why?
I would highlight TMT (technology, media, and telecommunications), healthcare, and food as key industries. Additionally, AI and its applications will play an increasingly important role, particularly in the medical field. The integration of this technology into medical devices and clinical data analysis is expected to be a major trend in the coming years.
The software industry, especially vertical software, continues to grow, with large international groups driving market consolidation. In the food sector, there has been a strong demand for high-quality food products and sports supplements since the pandemic.
Q. How do you think regulations and the economic environment are impacting investment decisions?
From a macroeconomic perspective, the reduction of inflation and interest rates is making investment decisions easier. The environmental sector also deserves special mention. Climate change is driving an increase in regulations across many countries, and this will influence investors to focus on companies that adhere to strict ESG protocols. Consequently, 2025 could be the year of accelerated investment in energy transition projects.
