Consultancy firm TPA Horwath analyzed recent M&A activity in the Central and Eastern European (CEE) region between 2005 and 1H 2012. Approximately 70% of transactions closed occurred in four countries – Poland, the Czech Republic, Romania and Hungary. Other countries in the CEE region have participated in significantly fewer equity transfers. In countries with low levels of share ownership, such as Bosnia- Herzegovina, Bulgaria and Albania, the median transaction value is substantially above the median of the whole market, which corresponds to approximately €20 million. In these countries, there were large transactions predominantly in the energy and telecommunications sectors. These types of transactions will be repeated in the foreseeable future as privatizations and spin-offs continue. The Czech Republic and Poland also appear to be relatively dynamic and attractive M&A markets. The median transaction value exceeded the median transaction value for the entire CEE region, which suggests both countries are taking advantage of investors’ long term interest. M&A activity in other countries in the region seems to be less frequent. However, the median value of transactions closed in the CEE region indicates there are interesting investment opportunities. In looking at overall M&A activity, there is a relatively small number of transactions of substantial value and this hasn’t changed significantly in the post-crisis period (2009–1H 2012).
