Investing in CEE: Inbound M&A report 2020/2021
Despite the challenges caused by the Covid-19 pandemic, M&A deal making in Central & Eastern Europe remained robust in 2020.
The report, Investing in CEE: Inbound M&A Report 2020/2021, offers an overview of inbound M&A activity in the CEE region throughout 2020 and looks ahead to the challenges and opportunities in the coming months.
Deal value in the CEE region rose by 11% to €49.2bn, compared to 2019, even as volume dropped by 16% to a total of 648 transactions. This rise in deal value, in spite of the global pandemic, highlights the enduring appeal of the region for investors interested in big-ticket deals. When not including Russia, the region’s largest economy, recorded deal value figures in 2020 saw a 28% year-on-year increase.
International buyers continue to be attracted to the region, accounting for 49% of total deal value – investing €23.9bn – in line with previous years. Fabrice Demarigny, global head of financial advisory at Mazars, highlights how “on a global level, the CEE picture is one of stability. The region continues to attract a strong and steady flow of inbound investment from around the world.”
Private equity remained extremely active in 2020, with total disclosed buyouts in the region seeing a 40% year-on-year rise to €3.9bn. Private equity exits also fared well, with total disclosed value coming to €8.1bn, a 11% rise on 2019.
As Covid-19 vaccines continue to be rolled out, it is hoped that the second half of 2021 will offer a more stable deal-making environment. However, risks from new waves of the virus, international disputes, and unexpected economic shocks are ever-present.
“2020 has been marked by an unprecedented disruption caused by COVID-19 pandemic which has shaken the M&A landscape worldwide. This created a climate of macroeconomic and microeconomic uncertainty. Nevertheless, despite that situation combined with strong travel limitations and restrictions, closing transactions has been made possible with the help of technology and remote work”, says Michel Kiviatkowski, CEE leader of financial advisory at Mazars, Managing Partner of Mazars in Poland. He points to a positive year for the region, adding: “Thanks to its strong fundamentals, Central & Eastern Europe proved to be relatively more resilient than other emerging markets in terms of deal-making. Today, CEE is well-positioned to benefit from the post Covid-19 period, which will be marked among others by a strengthened trend of industrial supply-chain nearshoring from Asia to that region. Succession planning, PE funds’ investments and further consolidation in selected sectors should also drive the M&A activity this year”.
Further key findings from the report include:
The full report can be downloaded at: www.mazars.pl.
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For more information and/or interviews, please contact:
Edward Baggaley
Global Campaigns Manager
Tel: +44 (0)78 2408 6578
Email: edward.baggaley@mazars.co.uk
Renata Stefanowska
Marketing and Communications Manager, Mazars in Poland
Tel: +48 22 25 55 200
Email: r.stefanowska@mazars.pl
Lindsay Spivak
PR Manager, Acuris
Tel: +1 212 390 7853
Email: Lindsay.spivak@acuris.com
About Mazars
Mazars is an internationally integrated partnership, specialising in audit, accountancy, advisory, tax and legal services*. Operating in over 90 countries and territories around the world, we draw on the expertise of more than 42,000 professionals – 26,000+ in Mazars’ integrated partnership and 16,000+ via the Mazars North America Alliance – to assist clients of all sizes at every stage in their development.
Mazars has been operating in Poland since 1992, currently employs over 300 specialists in Warsaw and Krakow and serves over 800 Polish and international companies of various sizes, offering them a full range of services in the fields of audit, accounting, HR & payroll consultancy, tax, consulting and financial advisory.
*where permitted under applicable country laws
www.mazars.com | linkedin.com/company/mazars | twitter.com/mazarsgroup
www.pol.mazars.pl| linkedin.com/company/mazars-in-poland
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