M&A Market in CEE Sees Growth Amidst Strong Buyer Interest

The M&A market in Central and Eastern Europe continued its expansion in the second half of 2024, with increased deal activity and improving valuations. The number of sell-side transactions rose by 5%, while buy-side transactions increased by 3%, reflecting the region's ongoing economic stabilization and investor confidence. Additionally, the proportion of transactions exceeding €10 million rose from 32% in H1-2024 to 41% in H2-2024, surpassing the European average.

These findings stem from the latest CEE M&A Monitor, a biannual study conducted by Dealsuite, Europe’s leading platform for mid-market M&A transactions. The research, based on insights from 442 M&A advisory firms in the region, provides a comprehensive overview of deal trends and market developments.

More CEE M&A Deals Closing as Market Maturity and Transparency Improve

‍While 59% of sell-side assignments in CEE result in a closed deal, the region continues to experience strong transaction activity and growing investor interest. This sustained deal flow highlights the dynamism of the CEE mid-market, where increasing buyer engagement and improved financing conditions are paving the way for more successful transactions. Although the success rate is slightly below the European average—with DACH reporting a 62% completion rate, UK&I at 71%, and the Netherlands leading with 78%—ongoing progress in valuation alignment and deal structuring is expected to further enhance completion rates in the coming periods, reinforcing CEE’s position as a promising M&A hub.

Floyd Plettenberg, CEO of Dealsuite, confirms that these figures reflect a long-term shift in M&A dynamics: "Twenty years ago, 70% of closed deals failed to meet expectations. Today, 70% are considered successful. This shift shows how M&A has evolved into a more strategic tool for growth and innovation, driven by a more mature and professionalised M&A market. At Dealsuite, we see how better market access and transparency help buyers and sellers make informed decisions, leading to more and better deals."

As the M&A ecosystem in CEE continues to mature, investors are increasingly recognizing the value-creating potential of strategic acquisitions. With a strong pipeline of new opportunities and increasing cross-border interest, the region is set for further growth in transaction success rates in the years ahead.

Investor Confidence and Rising Valuations in CEE

‍Investor confidence remains strong, with valuations continuing their upward trajectory. The average company sale price relative to earnings (EBITDA multiple) increased to 5.3 in H2-2024, up from 5.2 in the previous period. Notably, Healthcare & Pharmaceuticals (7.4) and Software Development (6.6) recorded the highest valuations. This trend highlights growing investor appetite for businesses with strong fundamentals and high growth potential in the region.

Outlook for 2025: CEE M&A Market Poised for Further Growth

‍Looking ahead to 2025, M&A advisors in CEE remain optimistic, with 75% expecting further market expansion in the coming months. The combination of a strong deal pipeline, continued economic recovery, and increasing cross-border interest suggests that deal activity will remain robust. As the market matures, success rates are expected to rise, making CEE an increasingly attractive region for strategic and financial investors alike.