HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 19
CENTRAL AND EASTERN EUROPE M&AVOLUME PLUMMETS INQ1 AFTER RECORD 2021
With the ongoing war between Ukraine and Russia causing uncertainty in the CEE region, there was understandably a significant fall in M&A activity in Q1 2022 compared to Q1 2021 and this was off the back of the M&A market consistently shrinking since Q3 2021. Despite this, average deal value was higher than in any of the previous four quarters. However, activity in Industrial &Chemicals fell to a record low. There were 47 deals completed in Q1 2022, which meant that the overall deal volume was 30% lower compared to Q1 2021. Overall deal value declined by 16% to USD 5.1bn compared to Q1 2021. The CEE region recorded an average deal value of USD 108m in the quarter, the highest seen since Q2 2019. The overall decline in value was mainly related to the fall in PE deals, with PE buyouts accounting for just 13% of total value in the quarter. By comparison, in Q1 2021 the PE percentage of deals was 29%, an unusually high figure in the region. PE volume also shrunk to eight from 13 deals in the first quarter of 2022.
Finally, trade value has been roughly consistent over the past couple of quarters. KEY SECTORS AND DEALS The quarter’s top-performing sector was TMT with 15 transactions, which represented 32% of the total volume. Energy, Mining & Utilities was in second spot with 10 deals and Industrials & Chemicals was third with just six deals. This was the lowest deal volume ever recorded in Industrials & Chemicals, with only a third of deal numbers compared to its 2021 quarterly average. The region’s top three deals were as follows: • EmiTel sp. z o.o.: Alinda Cordiant Digital Infrastructure Limited (Poland) bought a 100% stake in the Polish multi-asset digital infrastructure company. The deal value was USD 477m • Aspire Global plc: Neogames (Israel) acquired a 100% stake in the gaming and casino platform provider for USD 474m
BIG PICTURE
• Total deal volume (47 transactions) dropped by 30% in Q1 2022 compared to Q1 2021 • PE’s share of deal value was 16 percentage points lower than a year before • With 15 deals, TMT accounted for 32% of total transaction volume.
• Aegon Magyarország Általános
Biztosító Zrt. and UNION Insurance: Corvinus Nemzetközi Befektetési Zrt. (Hungary) acquired a minority interest (a 45% stake) in both insurance companies for USD 398m.
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