European Capital Allocation 2025 Outlook – M&A, Dividends & Buybacks: BI Replay
European companies enter 2025 flush with cash, sitting on strong balance sheets and generating healthy cash-flow, bringing shareholder payouts to the top of corporate agendas. Acquisitions are picking up across many sectors, and though tactical "bolt-on" acquisitions dominate, bigger-ticket and cross border deals are increasingly likely. Dividends remain favored over share buybacks for most, as geopolitical and economic uncertainties encourage caution, but falling interest rates are a boost.