Is the Age of Mergers and Acquisitions in Fashion Over?

The fashion world loves a bold move. But lately they’ve been making fewer of them, at least when it comes to mergers and acquisitions. Reports show that while deal numbers in fashion have fallen sharply this year, the value of the ones that do happen is higher than ever.

According to PwC’s 2025 mid-year report, the number of consumer market deals fell by around 9% compared to 2024. In fashion and luxury specifically, the decline was even sharper (26% fewer deals in the first five months of 2025, according to FashionNetwork). Though there are fewer deals, the total value of transactions is up by about 32%.

Miuccia Prada and Donatella Versace (Michel Dufour, Getty Images)

 Recent headline examples prove the trend.

Prada Group's acquisition of Versace, valued between €1.25 -1.4 billion, was one of this year’s most significant moves, signaling how major houses are consolidating influence. Meanwhile, VF Corporation sold Dickies for roughly 600 million, showing how conglomerates are offloading legacy labels to refocus portfolios.

Deals are also taking longer to close. According to ModernRetail, deals in 2025 are taking roughly 71 days on average to close, compared to last year's 58 days. Buyers are doing their due diligence, with a sharper eye on stability, digital maturity, and supply chain control.

PwC’s data also shows that the average valuation multiple (EV/EBITDA) dropped from about 14 times annual earnings in late 2024 to roughly 11 times this year, meaning investors are paying less relative to profits. For smaller brands, this new environment can be daunting. The big fish are growing while emerging designers face fewer opportunities to be bought or rapidly expand through partnerships. But it’s also pushing many independents to strengthen their business foundations. A slower, more strategic kind of growth.

The brand web of French fashion conglomerate LVMH.

So what happens next? Maybe consolidation continues, leaving fashion dominated by a few global giants. Or maybe it forces smaller brands to innovate, build loyal followings, and prove they can thrive on their own. Either way, one thing is clear: the fashion business landscape is shifting from a frenzy of fast deals to a cautious game of long-term strategy.

Written by: Daniella Adeyemi

Edited by: Sophia Tronnes