CEE Dealmakers Insights: European and CEE M&A advisors optimistic about the CEE M&A Market for 2024

The European and Central and Eastern European (CEE) M&A market has experienced a dynamic shift, showcasing notable trends and outcomes across different sectors and regions. The recent study, which includes views from both Western Europe and Central and Eastern Europe, shows important results that highlight the changing world of mergers and acquisitions.

Advisors optimistic about the CEE M&A Market for 2024 

Factors such as entrepreneurs' willingness to sell, funding availability, and macroeconomic developments play crucial roles in shaping market dynamics. Survey results indicate a mixed retrospective view of H2-2023, with 50% of advisors expressing satisfaction. However, the forward-looking sentiment is markedly positive, with 70% of advisors optimistic about the market's prospects in the first half of 2024.

Assignments increased for CEE advisors
40% of advisors report an increased number of assignments compared to H1-2023. One third (34%) perceives a similar situation compared to H1-2023 and 26% witnessed a decrease in assignments.

Transaction Sizes in the CEE Region

The Dealmaker Insights report provides an insightful analysis into the average transaction sizes within the CEE region during H2-2023. The majority of deals (44%) were observed in the €2.5-10 million enterprise value segment. Meanwhile, nearly a third (29%) of transactions were valued at less than €2.5 million, with a similar proportion (27%) exceeding €10 million in enterprise value. This shows the wide variety of merger and acquisition activities in Central and Eastern Europe.

Insights from CEE Dealmakers

To explore the trends more closely, selected experts from Central and Eastern Europe offered their thoughts on crucial elements of the M&A market. 59% of people asked agreed that companies are now more interested in forming partnerships instead of just buying others out, showing a move towards working together in business. Floyd Plettenberg, CEO of Dealsuite, echoed this sentiment, emphasizing the evolution of company relationships from targets to partners.

Additionally, in examining the motivations for acquisitions in 2023, entering new markets emerged as the top reason for 77% of those surveyed. Other key motives included enhancing EBITDA (64%) and realizing cost efficiencies and synergies (63%), this illustrates the strategic factors that influence decisions in the mergers and acquisitions sector.