M&A Outlook For CEE In 2024, Balancing Dynamism With Caution

The first quarter of 2024 saw the M&A market in Central and Eastern Europe (CEE) closely mirror broader global economic trends. Much like the rest of Europe, the CEE region experienced a slowdown in economic activity, reflecting global market challenges. Key players like Germany and France experienced significant declines in manufacturing, which had a ripple effect across smaller economies such as Slovakia and the Czech Republic where the automotive industry accounts for a significant portion of GDP (12% and 17% respectively).

Despite these external pressures, the mood among CEE market participants – from private equity (PE) and venture capital (VC) funds to sector investors – remains cautiously optimistic. This optimism is largely driven by better alignment in pricing expectations between buyers and sellers and increased market consolidation across various industries. While global investors have been less prominent, domestic players have taken the initiative,