Mergermarket: Ellex surpasses $1 Billion in Deal Value in the Baltics

Ellex is the leading law firm in the Baltic region by deal count, having completed 44 transactions worth over USD 1 billion in the first three quarters of the year, according to data from Mergermarket. Ellex is also the only Baltic law firm among other European law firms with the highest transaction value in the Baltic region. The average Ellex transaction value was USD 23.5 million.

“The economic situation of a region and its appeal to foreign investors can often be indicated by the M&A market – how many deals have been completed in the region, their value, etc. The Baltic M&A market has demonstrated a significant recovery this year, with more than 440 deals completed in the first three quarters — a roughly 21% increase in comparison to the same period last year,” says Paulius Gruodis, partner of the Corporate Practice at Ellex in Lithuania.

“We welcome the strong recovery of the Baltic dealmaking market and are happy to note that the region’s geopolitical challenges have had no significant impact on attracting new investments in the region,” concludes Sven Papp, corporate M&A partner of Ellex Estonia.

“The European Central Bank (ECB) has reduced the base interest rate for the third time after a long period, and the U.S. Federal Reserve is also making decisions to lower interest rates due to stabilized inflation. This is expected to have a positive impact on the M&A market. While it would be premature to conclude that these actions have already affected the Baltic countries’ M&A market, there is a clear sense of optimism and increasing adaptation to our complex geopolitical situation, which is encouraging for investors in the region. It seems that the ongoing series of interest rate cuts is likely to have a very positive effect on the market for transactions, particularly those partially or fully financed via borrowed funds,” says Rūta Armonė, partner and co-head of the Corporate Practice at Ellex in Lithuania.

Ellex experts are confident that the last quarter of this year will be more active than the same period last year, with declining interest rates increasingly impacting the financing of technology businesses through venture capital funds. Recently, venture capital funding has significantly decreased, leaving some businesses with limited access to finance and making acquisitions the only viable option for continuing operations.

As for the transactions involving Ellex, there has been a noticeable increase in market activity, with more projects from both regional companies and foreign investors. The most popular sectors remain unchanged, with technology and energy deals leading the way.

Ellex provides consultations on a wide range of issues related to public and private mergers and acquisitions, with a particular focus on complex international transactions. Whether working independently or in collaboration with leading law firms in Europe and beyond, Ellex experts strive to find solutions tailored to the unique requirements of each business.