Dutch M&A trends in Industrials & Services

Automation, digitalisation and AI are emerging as key value drivers, while investments in energy, infrastructure and defence are supporting selective dealmaking. In this environment, portfolio reshaping is becoming increasingly important, with corporates and private equity reallocating capital towards technology-driven and service-oriented activities. Private equity continues to act as an important catalyst across themes such as digitalisation, the energy transition and AI infrastructure. Investors show a strong preference for business models with recurring revenues in fragmented markets. Buy-and-build strategies enable rapid scaling, platform expansion and operational value creation. 

Transformation under pressure 

Many Dutch industrial leaders are concerned about whether the transformation of their organisations can keep pace with the speed of technological developments, says Industrials & Services Deals Leader Joscha van den Bos. ‘In addition to productivity pressures, limited nitrogen permits and an overburdened infrastructure are also constraining growth ambitions. This requires companies to make sharper strategic choices and focus on higher value-added activities, which has direct implications for the composition and deployment of the workforce.’ 

Engineering & Construction 

The Dutch engineering and construction sector is seeing stable M&A activity, supported by investments in infrastructure, renewable energy and data centres. ‘The ongoing expansion of the electricity grid is driving interest from specialised contractors and technical service providers,’ says Van den Bos. ‘At the same time, grid congestion is clearly limiting further growth. Labour shortages, regulatory complexity and cost inflation also remain key risks that affect project planning and delivery timelines.’ 

Business Services 

Further consolidation is expected in the business services sector, driven by the need to integrate value-added technology platforms such as AI-driven analytics, Robotic Process Automation and cloud solutions. Cross-border transactions remain common, underlining the Netherlands’ role as a gateway to Europe. At the same time, talent retention remains a major challenge in a competitive labour market, particularly for IT and consulting roles. Private equity-driven consolidation continues in recurring, technology-enabled services, with activity expanding into legal services, staffing & BPO, compliance, managed IT, cybersecurity and audit-driven platforms. 

Manufacturing 

Strong growth is expected around AI and AI infrastructure. ‘This will further increase long-term demand for semiconductors and impact multiple ecosystems within the Dutch manufacturing sector,’ Van den Bos adds. M&A activity is primarily focused on companies investing in Industry 4.0 technologies, automation and sustainability. Demand driven by AI infrastructure and the energy transition is supporting selective dealmaking. M&A activity will focus on companies with resilient supply chains and those that effectively leverage critical R&D capabilities. 

Automotive 

The M&A Outlook anticipates that global dealmaking in the automotive sector will remain selective in 2026 due to overcapacity and capital pressure. As a result, strategic alliances and targeted acquisitions are expected to be favoured over large-scale transactions. 

Van den Bos: ‘The Dutch automotive supply chain is shifting towards EV components, smart mobility and high-tech systems. Sustainable margins are increasingly achieved by companies that focus on advanced technologies or differentiated quality.’ 

Defence 

Significant opportunities are emerging in the defence sector following the government’s commitment to increase core defence spending to 3.5% of GDP. This implies that the Netherlands aims to spend approximately €178 billion on defence between 2025 and 2030. Of this amount, an estimated €41 billion could benefit the Dutch manufacturing industry. Recent PwC research identifies around 3,000 companies that could play a role in this ecosystem, often through strategic alliances. 

‘The focus is on strengthening supply chain security and technological autonomy within a highly regulated environment,’ says Van den Bos. ‘In addition, the Ministry of Defence intends to invest a further 1.5% of GDP in strengthening broader resilience and supporting domains such as cybersecurity, logistics and infrastructure. This creates attractive opportunities for sectors such as construction and logistics and is expected to further stimulate M&A activity.’