The latest M&A market trends

WALLESS partners Rolan Jankelevitsh, Karl-Erich Trisberg, Zane Eglīte-Fogele, Povilas Žukauskas, and Andrius Ivanauskas have recently commented on the M&A trends in the Baltics in various publications highlighting the below:

• The 2023 outlook is mixed: some expect that the deal volume will remain relatively stable thanks to vast amounts of PE dry powder, while others anticipate some slow-down in deal activity.

• Soaring inflation and interest rates make acquisitions more expensive.

• The number of mergers will grow faster relative to the number of acquisitions.

• Corporate restructuring and other tools of business optimization are gaining relevance.

• Industries where M&A activity will continue to be highly active are life science/healthcare and energy.

• High demand for technology and digital/data-driven assets continues to drive M&A in these sectors.

• Separation of different business lines may become a new trend, as it might make it easier for companies to keep focus and attract investors.

• We will see fewer IPOs compared to recent years.

• The importance of environmental, social and governance (ESG) factors is increasingly recognized in M&A decision-making, becoming an integral part of investors’ value calculations.

• With energy security advancing to the forefront of national and broader European agenda, investments in green energy projects are expected to continue and grow.

• Generation shift continues to fuel M&A activity in the Baltics.

• Investments from outside the EU will receive more scrutiny as Estonia is the last of the Baltic countries to adopt an FDI screening regime.

• Caution is likely to remain the guiding principle in the M&A market.

Read the full articles here (in Estonian):

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