Stakeholders expect a further increase in Mergers & Acquisitions (M&A) activity in Romania in 2020 after one of the most successful years in the last decade. The first edition of a new KPMG publication The M&A Landscape in Romania shows investor confidence is continuing to build up, supported by the GDP growth trend and favorable geopolitical position in the region.
Romania has become a significant investment destination, over the last 15 years, for both strategic and financial investors. Buyers find M&As to be a useful strategy to seize the moment in a rapidly growing environment, while sellers try to realize the value that has been built up in local companies.
We expect to see another busy year as positive sentiment is fostered by sustainable economic growth and increased attractiveness of Romanian targets, which are strengthening their market position and are opening new development opportunities through regional expansion. Furthermore, Romanian entrepreneurs, in their quest for growth, continue to be faced with a buy versus build strategy and have begun to consider M&As as an integral part of their strategy.
In the context of a booming global M&A market, our survey found a strong sense of optimism at the national level, with 67% of respondents expecting high levels of M&A activity in Romania to continue over the coming months. Sectors such as technology, healthcare and energy are expected to be particularly attractive.
The study shows that buyers are worried about substantial differences in price expectations and global macroeconomic uncertainties. At the same time, investors consider that target readiness has a material impact on deal making.
