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Iberian M&A and Private Capital Market 2026: Fewer Transactions, Greater Value
The Iberian Mergers and Acquisitions (M&A) and Private Capital market is undergoing a period of structural transition. Third-quarter 2026 data shows that, despite a decline in the number of transactions, overall deal value remains resilient, driven by large-scale deals, international investment and different capital-raising strategies in Portugal and Spain.
In the year to September, 2,261 transactions were recorded across the Iberian Peninsula, down 15.29% year-on-year, while aggregate deal value reached €73,803 million, representing a more moderate decrease of 6.17%.
The difference between these two figures is one of the most significant signals of the period: transaction activity is declining faster than the value of deals, pointing to a greater concentration of investment in larger transactions.
01 Overall Iberian Market Overview
02 Foreign Investment
03 Portugal and Spain: Two Distinct Approaches to Investment
04 Sectors Continuing to Attract Investment
05 A Market in Transformation
Both Portugal and Spain recorded a decline in the number of transactions compared with the same period last year, while aggregate deal value increased in both markets.
In Portugal, 120 transactions were recorded, down 7.69% compared with the third quarter of 2025. Nevertheless, total deal value increased by 129.33%, reaching €4,768 million.
In Spain, the difference was equally significant: the number of transactions fell by 23.76% to 616 year-on-year, while aggregate deal value grew by 16.77%, reaching €20,651 million.
These results highlight the impact of mega-deals on the market: fewer transactions do not necessarily mean less capital invested, particularly when certain large-scale deals can significantly influence the aggregate value of a quarter. The sector's maturity is also reflected in execution, with 90% of initiated transactions successfully completed, indicating lower uncertainty and greater efficiency.
Across the Iberian market, M&A continues to represent a central component of investment activity. In the year to September 2026, the segment recorded 919 transactions, with an aggregate value of €33,301 million, equivalent to approximately 45% of the total market.
The international dimension is another important factor underpinning liquidity in the Iberian market. Cross-border transactions help broaden the available sources of capital and enable businesses to explore growth opportunities beyond their domestic markets.
In the year to September 2026, 676 inbound acquisitions were recorded, with an aggregate value of €29,390 million. These transactions represent foreign investment in Iberian companies, with capital inflows from the United States, the United Kingdom and France standing out.
In the opposite direction, outbound acquisitions totalled 316 transactions, with an aggregate value of €26,545 million.
These figures demonstrate the importance of international capital flows in both directions: the Iberian Peninsula continues to attract foreign investment, while Iberian companies and investors seek opportunities in other markets. As such, international investment can provide access to new markets, strategic assets and cross-border expansion opportunities.
Although both markets experienced a decline in transaction volume and an increase in deal value during the third quarter, Portugal and Spain have different investment drivers.
In Portugal, Asset Acquisitions made the largest contribution to the increase in deal value. The segment recorded 31 transactions, totalling €2,844 million, representing growth of 335.79% compared with the same period last year.
M&A accounted for 51 transactions, valued at €1,509 million. Venture Capital recorded 21 deals worth €383 million, an increase of 127.74% in value. Private Equity registered 17 transactions, with an aggregate value of €33 million.
The acquisition of the Covilhã Data Center Campus by Asterion Industrial Partners, through Mezan SPV 2025, from Altice Portugal, for €120 million, was named the 'deal of the quarter'. This transaction illustrates Portugal's attractiveness for investment in critical digital infrastructure.
In Spain, Private Equity was the main investment driver, recording 105 transactions worth €6,986 million, an increase of 280.35% compared with the third quarter of 2025.
M&A accounted for 256 transactions worth €6,357 million, while Asset Acquisitions totalled 157 transactions and €5,558 million. Venture Capital recorded 100 deals, with a total value of €1,869 million.
The most significant deal was the acquisition of US-based Webster Financial Corporation by Banco Santander, valued at approximately €10,325 million. The transaction highlights a large-scale international expansion strategy and helps explain the impact individual deals can have on aggregate deal value in the Spanish market.
Across Iberia, the Real Estate sector led in terms of transaction volume, with 572 deals, despite a decline of 13% in Spain and 27% in Portugal compared with the same period last year.
This was followed by Internet, Software & IT Services, with 249 transactions, also recording declines of 13% in Spain and 21% in Portugal, and Business & Professional Support Services, with 199 transactions, representing growth of 4% in Spain and 41% in Portugal.
Real Estate, Internet, Software & IT Services and renewable energy remained among the sectors with the highest number of transactions.
Activity was particularly strong in Real Estate, technology, tourism, hospitality and leisure, and business and professional support services. Industry-specific software stood out for its growth, increasing by 22% compared with the same period in 2025.
The diversity of these sectors shows that investment continues to target a wide range of assets and business models.
The Iberian M&A and Private Capital market is entering a phase of greater selectivity, in which the ability to successfully complete deals is becoming more important than transaction volume. The decline in the number of transactions, accompanied by a more moderate reduction in aggregate deal value, points to a market in which larger deals are playing an increasingly important role. With 90% of initiated transactions successfully completed, the data also indicates greater execution efficiency and a more selective approach to investment.
This evolution is taking place in a market increasingly connected to international capital flows. Foreign investment, particularly from Anglo-Saxon markets and France, continues to support liquidity across the Iberian Peninsula, while cross-border transactions reflect the search for opportunities beyond national borders.
For businesses, this environment reinforces the importance of strategic preparation, whether to attract investment, grow through acquisitions or structure a sale. The international dimension creates further strategic opportunities: accessing international investors, exploring new markets or identifying partners who can accelerate growth.
The differences between Portugal and Spain also demonstrate that there is no single route to securing investment. The choice between M&A, Private Equity, Venture Capital or transactions involving specific assets will depend on the nature of the business, shareholders' objectives and the type of capital being sought. An effective strategy requires clear objectives, robust financial information and a differentiated value proposition.
In a market undergoing transformation, the opportunity lies not simply in completing a transaction, but in preparing a business to ensure that the deal creates value. Understanding investment dynamics, monitoring international developments and anticipating the expectations of investors and buyers can be decisive for businesses seeking to grow, transform or prepare for their next stage of development.
Source: TTR Data, Quarterly Report – 3Q 2026.
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