Ellex Baltic M&A Monitor: 2016 a record-breaking year

A new report by Ellex and Mergermarket reveals that the Baltic countries Estonia, Latvia and Lithuania made history in 2016, reaching fever pitch with the region's largest number of transactions ever.

 

The outlook for M&A activity in 2017 is positive as the European Commission predicts all three countries will experience solid GDP growth.

 

• Deal value: 716 MEUR (up 17% YoY)

• Deal volume: total 63 (up 24% YoY)

• Estonia 33 deals, 331 MEUR total value

• Latvia 11 deals, 151 MEUR total value

• Lithuania 19 deals, 234 MEUR total value

• Capital: 64% domestic, 36% inbound (2015: 57% domestic, 43% inbound)

 

Further key findings from the report:

 

The highest-value sector in 2016 was technology, media and telecommunications (TMT), with deals for 268 MEUR. This partly reflects the fact that the Baltic region is home to a number of innovative technology companies. Additionally, international technology firms view the Baltics as an attractive investment destination. Other major growth sectors for Baltic M&A in recent times have been energy, mining and utilities (EMU), and renewable energy.

 

Domestic deal volume rose to 64% of transactions in 2016, from 57% in 2015.

 

Looking ahead, the Baltic M&A market is expected to grow further in 2017. A number of sectors are primed for activity. The consumer sector will be a likely standout performer this year, as increases in consumer spending provide companies with the will and means to grow. The EMU sector has the second-most early-stage deals. Anticipated changes in government policy will also benefit several sectors in the Baltic region. To sum up the outlook for 2017, the Baltics will continue to be seen as an attractive investment destination and M&A will remain a key strategy for business growth.

 

To view full report, please click HERE.