CEE continues to rise despite pandemic
Growth arc long predates Covid-19 and will continue past it
Last year was a training course in adaption and agility, and there were many lessons learned in CEE and across the world. However, businesses and investors in the region can continue to look forward to numerous opportunities due to long term trends that are far larger and more influential than the temporary challenges of the pandemic.
Resilience and opportunity in Central & Eastern Europe
Ileana Glodeanu and Richard Clegg
A region of game changers and outside the box thinkers, CEE has undergone intense business transformation during the pandemic as its business leaders have learned to adapt and stay agile.
Listen to the podcast:
Raising capital in a changing world
Failing to see the wood for the trees in 2021 and therefore missing investment opportunities due to fear of the unknown may prove costly for investors and entrepreneurs.
M&A overview: Overcoming COVID-19 and hope for the future
CEE has defied the pandemic, with deal value actually rising in 2020. Early intervention as the pandemic emerged and strong fiscal discipline have stood economies in good stead during this crisis period.
We explore key trends in the region that are shaping the recovery period. There are positive tailwinds in CEE right now, and there has been a significant increase in FDI in recent years. Coupled with shifting conditions in the employment landscape, these make up opportunities that businesses can leverage for growth.
CHANGE OF USE OF REAL ESTATE
The outbreak of the pandemic has impacted the investment profile of real estate substantially and has stimulated and accelerated developments in the market that few had anticipated would happen so quickly in the space of a single year. There is a growing trend of repurposing property from uses that are increasingly obsolete – and hence less profitable – towards real estate that meets current demands.
Preventative restructuring to avoid insolvencies
Countries across the EU are implementing the Restructuring Directive to create and/or bolster their pre-insolvency restructuring frameworks. While progress is uneven and a July 2021 deadline is looming, this could be a game changer for pre-insolvency regimes in CEE.
FDI regimes in CEE in times of COVID
Due to the vulnerabilities of excessive reliance on externalised foreign supply chains, countries in CEE have accelerated the adoption of FDI regimes in certain critical infrastructure and technologies. Foreign investors must be well informed and prepared for increased scrutiny and further compliance requirements that will need to be met.
Changes in the world of work
Global events have changed how and where we work, presenting employers with new questions and challenges.
This is a region of game changers and outside the box thinkers, who are well equipped to face challenges. Those looking beyond their core businesses to create value reinvented themselves and had the courage to make tricky decisions. This has allowed for intense business transformation.
M&A value increased in CEE by 29% in 2020
Value rose in the region while global value decreased by 7% in the same period.
Talent returning home –1.3 million Romanians returned in 2020
Brain drain is being reversed as many talented individuals bring their skills home.
Increase in venture capital in past 12 – 18 months
Particularly in technology-related industries and at larger ticket sizes.