Less deals and slower sale processes.
Closing deals is contextual.
In H2 2025, some major macro aspects must be factored in:
– inflation
– budget deficit
– raising public and private debt
– excessive lending and bad loans
– energy sector indebtedness and inefficiencies
– lower than predicted GDP growth
– lower FDI
Add:
– political instability
– negative sentiment against joining the Eurozone emphasising on potential wide and significant price increases (fuelled by anti-European forces)
– falling investments, down M&A market, longer exit processes, frequently interrupted or suspended
It is not unprecedented. Patient and decisive acquirers can discover value in undervalued or high-potential businesses open to value creation. Plenty of tactical opportunities – but they are complex, time-sensitive, delicate. Not for anyone but – for sophisticated and determined investors. Who could acquire, analyse the relevant data (and context), retain the best available advisers, effectively utilise their advice, decide and move swiftly.
By Pavel Hristov and Dragomir Stefanov, Partners, Hristov & Partners
