What is sold in Baltics, stays in Baltics, new study finds
The majority of companies that buy Estonian, Latvian and Lithuanian enterprises also come from the Baltic and Nordic countries, according to the findings of the new “Baltic M&A Deal Points Study” that sheds light on the years-long work of eight leading law firms.
The proportion of Estonian buyers is up, with nearly a quarter of purchasers coming from the smallest Baltic state (with Lithuania representing 19% and Latvia 9% of the buyers). The overall diversity of buyers has also increased. At the same time, Finnish, Russian and US buyer numbers are notably down, compared to the situation a few years ago.
The majority of buyers, 66% are strategic buyers, while a quarter represent financial and private equity investors. Only 3% of buyers are private individuals – a number that is significantly down from the 13% in 2013. Management buyouts, always a small but interesting part of the market, represent another 3% of the transactions.
The survey analysed 168 Baltic M&A transactions done in the period of July 2013 to December 2015, a record number of deals ever viewed by the study. The most active economic sectors in the Baltic M&A market were construction and real estate, technology, financial services, and energy and utilities. The value of a typical Baltic M&A transaction remains in the EUR 1-5 million bracket.
“We are proud of such continued collaboration between the Baltic law firms,” says Toomas Prangli, the initiator of the survey. “Since this is already our forth joint study, it also plays a knowledge sharing role.”
The survey was conducted by the Estonian, Latvian and Lithuanian Private Equity and Venture Capital Associations, based on contributions from eight leading pan-Baltic law firms and alliances, Cobalt, Ellex, Eversheds, Glimstedt, Primus, Sorainen, Tark Grunte Sutkiene ja Triniti. Presentation events will be held in all three Baltic countries.