CEE M&A Market Outlook

The Central and Eastern European (CEE) region has shown strong economic resilience in recent years, even during global challenges. Key factors — such as low public debt, independent central banks, and improvements in current accounts — have supported the region’s steady growth. These strengths, together with decreasing inflation and interest rates, indicate that the CEE region’s economic growth is likely to continue into the future.

According to Peter Furda, Director at Patria Corporate Finance, a trusted partner of Dealsuite and member of Clairfield International, the CEE region is drawing increased interest from Western European and global investors. With a highly educated workforce and still affordable labor costs, the CEE region has become a preferred destination for foreign direct investments. This dynamic labor market allows companies to approach skilled talent in a cost effective manner, providing a strong incentive for businesses seeking operational efficiencies.

‍Strategic Geographic Advantages for Investment

Furthermore, the CEE region’s strategic geographic location — serving as a gateway between Western Europe and emerging markets in Asia and the Middle East — strengthens its image as a coveted investment hub. This position enables businesses to reach both established and expanding markets, reinforcing the CEE region’s role as a key player on the global investment map.

‍Key Growth Sectors in the CEE Region

Sectors such as Technology, Manufacturing, and Energy have been particularly appealing for investors. According to Mazars, the total disclosed deal value in the CEE Energy & Utilities sector reached €6.24 Billion in 2023, an impressive amount compared to the average of €2.19 Billion across all CEE sectors in the same period. The ongoing digital transformation and the emphasis on renewable energy projects have opened up new avenues for M&A, providing lucrative opportunities for both strategic and financial investors.

Patria Corporate Finance, the leading M&A advisory company in the Czech Republic, has been at the forefront of navigating these trends. With its extensive sector knowledge and international experience, Patria has solidified its leading position both within the Czech Republic  and Slovakia. These emerging opportunities are particularly relevant to Patria’s expertise.

Commenting on the rise of these sectors in the CEE region, Peter Furda explains:

‍“Technology is appealing because of its scalability and still relatively lower labor and development costs compared to the US and Western Europe. Energy investments are driven by the growth of the renewable energy sector and room to improve existing energy infrastructure.”

‍Increase in CEE M&A Activity

Peter Furda expects an increase in M&A transactions not only in the technology and energy sectors, but across all industries in the CEE region. He notes:

“We expect M&A activity to grow due to declining interest rates and improved market conditions, including lower inflation, stabilized energy prices, and anticipated economic gains in both the private and public sectors. We also believe that succession-driven M&A transactions will become increasingly common across the CEE region.”

For 2025, the International Monetary Fund (IMF) projects a strong Real GDP growth in countries like Poland, the Czech Republic, and Romania, at 3.5%, 2.3% and 3.3%, respectively, which stands in contrast to some of its Western neighbors, such as Germany, France and the UK at 0.8%, 1.1%, and 1.5%. Simultaneously, the CEE region has already seen a surge in M&A activity, with the deal volume reaching 1015 deals in 2023, up from 178 deals in 2003 (Aventis Advisors). Patria projects this trend to continue with international private equity funds seeking to create CEE region champions across various sectors.

‍Driving Cross-Border M&A Opportunities with Dealsuite

Patria Corporate Finance leverages Dealsuite to connect with international players and exchange opportunities, fostering collaboration and expanding their reach in the global M&A market.

‍“Within the past 9 months, we were able to source multiple cross-border M&A investment opportunities to our Czech & Slovak SME clients while using Dealsuite. We also use the tool to market our sell-sides to strengthen global reach. We appreciate being part of the highly committed Dealsuite M&A community.”

After entering the CEE market in 2023, Dealsuite is now rapidly expanding with the aim of supporting the growth in M&A activity across the region. So far, this has already been achieved by hosting events in major cities like Warsaw, Krakow, Prague, Bucharest, Budapest, and Sofia. Moreover, Dealsuite’s CEE M&A Monitor provides exclusive data and insights into M&A trends targeting the CEE market, with over 80 regional and 1,500+ global organizations using the trusted platform for M&A opportunities.

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Get in touch with Patria Corporate Finance, one of Czech Republic’s top M&A players, through Dealsuite here.

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