What is driving transatlantic M&A?
U.S. appetite for European assets is booming, with 213 acquisitions taking place in the first quarter of 2026.
Part of the draw for U.S. buyers is clearly the ability to acquire assets at an attractive valuation relative to their domestic counterparts. Favorable exchange rates have also strengthened U.S. buyers’ purchasing power in recent years, although that advantage is fading.
Our survey shows that valuation mismatch is the fourth most significant driver of transatlantic M&A. The biggest motivation is customer growth, cited by 49% of respondents. Cultural similarities mean that accessing European and U.K. consumers is a natural next step when a business is reaching saturation point in its domestic U.S. market. For these businesses, the result can be a broader customer base and new sales opportunities.
The attractiveness of Europe several years ago was driven in large part by currency dynamics. For U.S. investors, a strong dollar effectively reduced acquisition costs and enhanced return potential. But successful investing is never about buying what's cheapest; it's about acquiring the best businesses at the right price. At the time, exchange rates created an opportunity to access high-quality European assets at valuations that were especially attractive relative to their U.S. counterparts. I see much less of that currency tailwind today.
Eva Davis Partner, U.S.
Our survey shows that valuation mismatch is the fourth most significant driver of transatlantic M&A.
The biggest motivation is customer growth, cited by 49% of respondents. Cultural similarities mean that accessing European and U.K. consumers is a natural next step when a business is reaching saturation point in its domestic U.S. market. For these businesses, the result can be a broader customer base and new sales opportunities.
Why cross the Atlantic?
Selected leading reasons dealmakers might pursue a transatlantic deal over more local or regional M&A:
Expanding the customer base is followed by access to advanced technology as a key driver of M&A, according to the survey, with U.S. buyers actively scouring Europe’s technology hubs for R&D that they are missing in-house.
This type of acquisition activity is prominent in the Netherlands, where U.S. buyers are acquiring start-ups and scale-ups across both the hardware and software sectors.
U.S. buyers are also increasingly looking to access European talent through M&A, particularly in areas of tech where the region has specific expertise. We are seeing a rush for talent, and access to strong individuals is one of the reasons U.S. businesses are prospecting Europe for investment opportunities. IP acquisitions are another strong driver. For many transactions, the rationale goes beyond simply acquiring a customer base; it is about acquiring a capability that the buyer does not already have.
The Dutch innovation practice, including Eindhoven and Brussels, is flourishing because the wider innovation climate is developing rapidly and ideally suited to international dealmaking. One example is a deep tech quantum-computing project, where we effectively act for the Dutch state, taking the project to the U.S. and positioning it for a U.S. IPO. That will immediately open the U.S. market to the venture and bring significant capital and potential.
Antony Jonkman Partner, The Netherlands
Europe remains highly attractive to U.S. buyers. This is less about the strength of the dollar than it is about a strategic imperative: acquiring exceptional talent and high-value intellectual property in markets that offer stability, depth, and regulatory predictability. These M&A transactions are more than acquisitions—they provide a strategic foothold from which U.S. companies can establish themselves and pursue growth in new and promising European markets.
Grine Lahreche Partner, France
Where is capital heading?
Where is capital heading? Large-cap vs mid-market M&A
U.S. buyers are also increasingly looking to access European talent through M&A, particularly in areas of tech where the region has specific expertise. We are seeing a rush for talent, and access to strong individuals is one of the reasons U.S. businesses are prospecting Europe for investment opportunities. IP acquisitions are another strong driver. For many transactions the rationale goes beyond simply acquiring a customer base; it is about acquiring a capability that the buyer does not already have.
Transatlantic M&A is heavily weighted toward U.S. buyers acquiring European businesses, but there are exceptions, most notably in life sciences, where major U.K. and European companies are active acquirers of U.S. assets. In other sectors, European buyers can struggle to compete with U.S. domestic rivals, given the higher multiples that U.S. assets typically command.
The transatlantic opportunity is therefore bigger than relative price. U.S. buyers are targeting Europe for customers, talent, technology, and capabilities that can accelerate growth.
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