Central and Eastern Europe’s M&A landscape is experiencing challenging and interesting times. Geopolitical tensions (not least Russia’s war in Ukraine), inflation, and regulatory hurdles have created headwinds – yet opportunities persist. Investors are selectively pursuing high-quality deals, and great companies with strong prospects are still being bought and sold. In short, while uncertainty has become the new normal, M&A isn’t going away and remains a fundamental growth strategy. As a recent survey noted, medium- to long-term prospects for deal-making remain positive, with participants preparing to seize the opportunities ahead. CEE as a region continues to attract interest thanks to its underlying growth drivers and relative stability, even compared to Western Europe.
Regional Hotspots: Romania and the Rise of Local Capital
One clear bright spot in CEE has been Romania, which has been a very hot market for the last few years. According to an EY survey, Romanian M&A activity has surged considerably: the first half of 2025 saw an estimated total deal value of around USD 4.1 billion, up 45% from H1 2024. In fact, Romania notched its second-highest half-year deal count on record during that period, a robust performance which contrasts a slight decline in deal values across Europe overall. This flurry of activity underscores that investor appetite remains strong where fundamentals are right – and Romania has been checking those boxes lately (from solid economic growth to specific sector opportunities).
Another trend across CEE is the changing profile of investors, with local capital prevailing more than ever. Domestic and regional investors – from homegrown companies to CEE-based private equity and even family offices – are increasingly driving deals. This rise of indigenous investors reflects both a maturing of local markets and a temporary pullback by some foreign investors due to global uncertainty. The good news is that CEE is no longer solely reliant on inbound investment;
local entrepreneurs, funds, and family businesses have amassed the confidence and capital to invest heavily in their own backyard.
Mature Markets, Fierce Competition
CEE is not a monolith – some markets are very mature, with intense competition both in business and in the legal profession. Poland and the Czech Republic stand out in this regard. These two EU-member economies have long since graduated from “emerging market” status;
they now boast sophisticated deal ecosystems and a crowded field of M&A advisors. Poland consistently leads the region in deal volume, and the Czech Republic often punches above its weight in total deal value.
With such activity levels, it’s no surprise that competition among law firms in Warsaw and Prague is fierce. International firms established local offices at both of these locations decades ago, and today they vie with strong local firms, independent CEE firms, and boutique players. As a result, clients in these markets enjoy a buyer’s market for legal services – they can choose from global names or top-tier local experts, all hungry to demonstrate value. This competition, while challenging for us lawyers, ultimately raises standards. However, the main downside of such saturation is pressure on fees and talent retention (the war for the best young lawyers is real), but, overall, it pushes us to innovate in quality and service delivery.
Final Thoughts
In conclusion, “lawyering in CEE” today is a dynamic endeavour – neither unequivocally good or bad, but certainly evolving for the better in many respects. We are certainly working in interesting times: markets are volatile but offer rich opportunities, from a boom in Romania to steady deal flow in Poland, the Czech Republic, and beyond.
Our clients are no longer just multinationals swooping in;
they’re also local champions and regional investors who have come into their own. The competitive landscape pushes us to excel, and emerging technologies push us to reinvent how we deliver legal services. There are trends I wholeheartedly embrace – including the professionalization and sophistication of CEE legal practice. There are, moreover, also developments to approach with caution, such as the impact of AI and the idea of non-lawyer investment.
What is clear is that the future of M&A lawyering in CEE will belong to those who can balance innovation with tradition. We must adapt (times change, and we are changing with them) while holding onto the fundamental role of a lawyer as a trusted advisor. The coming years – challenging, yes, but fascinating also – will determine if we can harness new tools and trends to make our market position even stronger.
By Jan Juroska, Office Managing Partner, Kinstellar Czech Republic
This article was originally published in Issue 12.10 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
