Beyond the economic and geopolitical challenges, there are reasons for optimism about the future of dealmaking in Central and Eastern Europe (CEE): renewed prosperity, economic competitiveness, increasing digitalisation and energy transition. Inflation has largely receded and interest rates are gradually beginning to follow. The dynamic CEE markets remain a prominent feature of the international investment landscape with transaction volumes remaining at a similar level to recent years. Findings from the CMS Emerging Europe M&A 2024/25 report, published in cooperation with EMIS, demonstrate the resilience of dealmakers and investors, who are poised to capitalise on opportunities presented by growing businesses in the CEE region - home to some very well-managed companies with enormous potential.
M&A activity time trend
Overcoming significant uncertainty, levels of M&A activity in 2024 demonstrate the continued resilience of CEE markets. Transaction volumes ended the year up by 8% at a five-year high of 1,281 deals compared with 1,186 in 2023.
Values, however, fell by 30.9 % year-on year to EUR 25.72 bn as there were fewer big deals compared with 2023, when seven of the top ten transactions were valued at more than EUR 1bn. Instead, there was a shift towards small and mid-market deals as the average deal value fell to EUR 20.1m in 2024 against EUR 31.4m in 2023.
Download the full Emerging Europe M&A Report 2024/2025
Dealmaking in the CEE region remains attractive for international investors, as shown by higher deal volumes in a range of countries and sectors last year. As optimism looks set to become the hallmark of 2025, buyers will continue to capitalise on the region’s diverse investment opportunities.
Horea Popescu
Managing Partner
The levels of M&A activity demonstrate the continued resilience of CEE markets – with overall transaction volume up by 8% at a five-year high. We expect to see the same trajectory and impetus continuing in 2025 with a higher volume of transactions across several sectors. Overall, the CEE region continues to benefit from relatively high levels of GDP growth and any short-term challenges are significantly outweighed by the strength of long-term potential in the region.
Radivoje Petrikić
Partner
