Emerging Europe M&A Report 2022/2023
The year 2022 started with various challenges, including rising inflation and energy prices. Then the Russian invasion of Ukraine added yet another one. Nonetheless, the M&A market in emerging European countries proved to be extremely resilient. The region saw M&A activity maintain a steady pace, though deal values were notably lower. Also, variations could be observed across territories and sectors. While 2022 brought a unique set of challenges, dealmaking largely compared favourably to pre-pandemic levels.
M&A activity time trend
Merger and acquisition (M&A) activity in the region kept up a steady pace in 2022, with 1,229 transactions, up 5.6% from 2021. Deal value, however, fell short of reaching 2021’s records, coming in at EUR 32.9bn, and plummeting 20.3% on the year.
It’s been a mixed tale in 2022, but I think it’s worth saying that the region remained resilient despite formidable challenges. In terms of sectors, technology has been on the rise for a few years and continues to deliver across all aspects, including software development and telecoms. I see absolutely no reason why activity in this sector should not continue over the next 24 months because the fundamentals are so strong. The same goes for renewables. The strength of these sectors will spark quite a large number of deals.
Horea Popescu
Managing Partner
M&A activity slowed compared to 2021, but it was still at pre-pandemic levels, confirming the attractiveness of the market even in hard times. M&A players have shown that they can easily adapt to new circumstances, and although they might show greater caution in pursuit of targets, deal levels are robust. Even though the current economic and geopolitical situation causes uncertainty and volatility, jurisdictions across the region are well placed to confront the challenges.
Radivoje Petrikić
Partner
