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Discover what’s next for M&A in Central and Eastern Europe.

Mike Hinchliffe, Head of Sales, Merrill Corporation | July 28, 2017

Get the Merrill perspective on deal activity, volumes and value for the region.

Download my infographic above here. Watch my video on current trends M&A in the Czech Republic here and Poland here.

Despite significantly lower announced M&A volumes across Europe, according to Merrill’s proprietary data, we’ve seen growth in projects so far this year compared to 2016. What’s more, our pipeline is up over 25 percent year on year.

Our partners at Mergermarket reported that the CEE region had a mixed start to the year. While deal value increased by 27% to €3.9 billion, the volume of deals in the region fell from 139 Q1 2016 to 91 this year. There have been fewer deals so far this year, but more positively, the average value has increased. The largest sector was the Consumer sector, perhaps driven by some of the booming economies in the region.

The Czech Republic is one of these rising star economies in the CEE region. There remains a strong pipeline of M&A and increasing confidence. The M&A market witnessed a 58% increase by value in Q1 this year versus Q1 2016. This comes after a 153% increase by value for 2016 over 2015, although this is partially driven by larger deals in the region, as the corresponding increase in volume was just 20%.

Key positive trends for Czech Republic in H1 2017:

• At present, deal value in the Czech Republic stands at US$16,264m

• Deal volume in the country comes in at 79 deals to date

• The number of deals in the Czech Republic account for 13% of deals taking place in the CEE region

Poland is the largest country in the CEE region in terms of M&A. 2017 got off to a healthy start with the M&A market in Q1 seeing a 58% increase in value over the same period in 2016. The Polish government is making significant investment in the region and the country itself it experiencing strong economic growth. Government driven deals have played a big part in the region and are expected to continue to drive activity in the future.

Key highlight for Poland in H1 2017:

• While deal volume has shown slightly lower figures for the period, deal volume is up - H1 2017 deal value in the country stands at US$4,192m versus US$3,402m in H1 2016

Download my infographic above here. Watch my video on current trends M&A in the Czech Republic here and Poland here.

If you want to learn more about how Merrill’s SAAS-based solutions can help you then get in touch now.

Credit: Data Source - Mergermarket.com
*Merrill sector breakdown
Energy: Energy, Mining Energy, Utilities (other). Industrials: Chemicals and materials. Industrial products and services, Industrial automation, Industrial: Electronics and Manufacturing (other). Consumer: Consumer: Retail, Consumer: Foods, Consumer: Other. Medical: Medical: Pharmaceuticals, Biotechnology, Medical. Financial Services. Business Services: Services (other). Technology: Computer software, Computer: Semiconductors, Telecommunications: Carriers, Computer services, Computer: Hardware, Telecommunications: Hardware. Other: Real Estate, Leisure, Media, Transportation, Construction, Internet / ecommerce, Automotive, Agriculture, Defence, Other.

 

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