Welcome to the newest edition of the Wolf Theiss Corporate Monitor's M&A Spotlight on CEE/SEE.
As in previous years, the Wolf Theiss Corporate Monitor provides an in-depth survey of the current and prospective M&A environment in Central, Eastern and South-Eastern Europe ("CEE/SEE"). Together with Mergermarket, we have examined the M&A environment in 2019 and the outlook among dealmakers for 2020, with a focus on seven key sectors. In order to shed more light on statistical trends and to correlate them with actual experiences in completing deals, we have interviewed dealmakers from a range of industries as well as private equity firms who are routinely involved in transactions in the region. Although M&A value dropped again in 2019, the number of deals has held steady, and it is notable that the vast majority (89%) of respondents say their experience in investing in CEE/SEE has made them likely to invest again in the region. This is perhaps unsurprising, given that the region's economic growth has consistently outpaced that of the rest of Europe over the past few years and is projected to continue to do so in the coming year. Moreover, compared to other fast-growing economies, the CEE/SEE region enjoys a greater level of political stability. While respondents expect significant headwinds which are likely to result in a more challenging environment for dealmaking, this is due mainly to external factors. Moreover, the region’s advantages, including its growth potential, relatively low costs, skilled workforce, and the membership of many of the region’s countries in the EU, will continue to appeal to investors, especially as growth in Western Europe slows. We hope you will enjoy reading the Wolf Theiss Corporate Monitor's M&A Spotlight on CEE/SEE and that it will provide you with practical guidance in evaluating the potential for completing deals in a dynamic and evolving region.
Horst Ebhardt Wolf Theiss