Fashion mergers and acquisitions fall 26% in the first five months of 2025

The global mergers and acquisitions (M&A) market began 2025 with tentative signs of recovery, but slowed down in the first five months of the year. According to a PwC report, the consumer sector saw a 9% reduction in transaction volume, although the overall value of transactions increased by 32%, driven by large, one-off deals.

In the fashion sector, however, the numbers were starker: there was a 26% drop in mergers and acquisitions, with only 26 transactions completed by May 2025, compared to 35 in the same period the previous year.

This decline reflects a more cautious stance among investors, who are reevaluating their portfolios and strategies in a scenario marked by high interest rates, geopolitical tensions, persistent inflation, and exchange rate instability. Especially in the fashion sector, which relies heavily on image, innovation, and reputation, selection criteria have become more stringent.

Among the factors that directly influence a brand's market value today are:

✔ Clear and regular corporate structure

✔ Properly registered intellectual property

✔ Ethical and legalized production chain

✔ Well-drafted contracts with suppliers, partners, and employees

✔ Compliance and integrity policy

Companies that neglect these aspects risk becoming unattractive, or even unviable, for investment funds, international groups, or even strategic partnerships.

Even so, major developments marked the beginning of the year, such as the acquisition of Dockers by Authentic Brands, the entry of Versace into the Prada group, and the potential purchase of Skechers by 3G Capital. However, all of these transactions have in common: they involve brands with a consolidated structure and a strong market presence.

This moment calls for increased attention from brands undergoing growth or consolidation. Having specialized legal counsel from the initial phase of a business, focusing on corporate structuring, contractual protection, and brand appreciation, is the path to becoming a healthy, scalable, and sought-after company in the market.

At Carolina Lago Advocacia, we offer comprehensive and strategic legal support to fashion brands that want to grow with solidity, compliance, and a long-term vision, whether to consolidate their market position or prepare for future negotiations.