European merger and acquisition activity declined sharply in the first half of 2026, according to Sifted data showing 324 exits across the continent. This represents a significant drop from 444 transactions recorded during the same period in 2025, signaling continued market caution among buyers and sellers.

Only 15 buyers completed multiple acquisitions during the first half, with most firms limiting themselves to just two deals each. The fragmented buyer landscape suggests capital constraints and selective appetite for acquisitions, particularly among private equity firms and strategic investors navigating economic uncertainty.

Norwegian investment firm Verdane Capital stood out as the exception, executing three acquisitions while most peers remained conservative. Sector analysis reveals technology investments dominated the landscape, though specific allocation percentages were obscured in the reporting. The limited pool of active acquirers indicates market consolidation rather than broad-based expansion.

Deal values reflected the cautious environment, with several transactions falling below typical thresholds for comparable periods. The data suggests European M&A markets face structural headwinds, with fewer participants and reduced transaction volumes pointing to ongoing valuation disconnects between sellers and buyers.