150 senior-level executives were asked to share their experiences and outlook on M&A in the CEE/SEE region. The study found that 62% of respondents cited TMT as one of the top two industries to watch out for in 2018, followed by consumer and leisure (44%) and pharma, medical and biotech (32%).
Other findings include:
- TMT sub-sectors seen as particularly promising are e-commerce, fintech, and data and analytics, each cited by 31% of respondents as among the top two most-appealing areas for investment. Cloud technology was not far behind, acknowledged by 30% of respondents.
- The dynamism of emerging companies in the CEE tech sector is also prominent, with some start-ups citing growth of up to 200% a year. Indeed, 53% of survey respondents said that they were interested in acquiring or investing in a start-up in the region over the coming year.
- Austria tops the table as the most-favourable market for M&A in the region, followed by the Czech Republic and Poland. Dealmaking within emerging markets Bulgaria and Romania is picking up pace, with the countries ranking fourth and fifth, respectively.
- The US is expected to be the largest single source of inbound acquisitions, cited by 29% of respondents, followed by European powerhouse Germany (22%). The UK comes in third in the expectation that its looming break from the EU will encourage British investors to diversify their portfolios into the growing markets of CEE.