“2019 was an intense year for dealmaking, the number of transactions reaching a 10-year high. Following a sluggish start, in specific circumstances, the market has regained its pace starting the second quarter and the total number of transactions has exceeded 100. The trend of non-reporting transaction values, which we have observed in previous years, has intensified: only 24 transactions have disclosed values. Under these circumstances, estimating the market value has become rather an indicative valuation exercise for our team”, said Ioana Filipescu Stamboli, Corporate Finance Partner, Deloitte Romania.
Nine transaction with a disclosed or estimated value of at least EUR 100 million were announced in 2019. In 2018, the corresponding number was 14.
The largest deals of 2019 were:
Private equity buyout activity continued to expand in 2019 with a total of 22 transactions. These include the acquisition of CME (including Pro TV) by PPF, Blackstone acquiring a minority stake in Superbet, Greenbridge entering the Romanian market, the acquisitions of CEE Equity (three deals), Innova, Abris and Highlander (two deals each), The Rohatyn Group’s decision to invest in Amethyst Radiotherapy and UiPath’s latest financing round.
“We are optimistic regarding the evolution of the M&A market in 2020. The activity remains robust with the macroeconomic fundamentals being solid and the financial performance of the companies on an upward trend. We see an increase demand for buy-side assistance coming from players already active on the local market, which signals that the consolidation trend will intensify in some sectors and we expect some large deals to be initiated in the coming months. On sell-side, the general context is favorable for entrepreneurs who envisage an exit this year”, added Ioana Filipescu Stamboli.
The Romanian M&A market, in 2019
Deloitte Romania coordinates an integrated multidisciplinary M&A practice, with a holistic approach that ranges across multiple service lines, including M&A Advisory, Transaction Services, Fiscal Advisory and Legal Advisory. Deloitte teams of skilled professionals can thus cover all relevant aspects of a transaction.
Deloitte provides worldwide audit, consulting, legal, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500 companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and high-quality service to address clients' most complex business challenges. Deloitte's goal is to make an impact that matters through its more than 312,000 professionals.
Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes and technology services and other related services with more than 1,700 professionals.
Please see www.deloitte.com/ro/about to learn more about the global network of member firms.
© 2020. For information, contact Deloitte Romania