Private equity firms are increasingly targeting Portugal’s family-owned businesses as a generation of founders reaches retirement age without succession plans, driving a rise in M&A activity across the country, according to a report by Bloomberg.
Family-owned businesses reportedly account for 70-80% of Portuguese companies, around half of employment and approximately 65% of GDP. As many entrepreneurs who established businesses during the 1980s and 1990s prepare to retire, private equity firms and overseas investors are pursuing opportunities across sectors including hospitality, healthcare, manufacturing and industrials.
The value of announced transactions in Portugal rose 28% year-on-year to €17.6bn in 2025, according to TTR Data, despite deal volumes remaining broadly unchanged. Industry participants cited lower valuations than other Western European markets, strong export-oriented businesses and increasing willingness among family owners to consider external capital as key drivers of investor interest.
Recent transactions include Arrow Global’s acquisition of six Dom Pedro hotels and five golf courses in a deal valued at approximately €250m. Other deals have included MFE-MediaForEurope’s investment in Portuguese media group Impresa, while packaging manufacturer Logoplaste has reportedly attracted interest from US private equity firms.
