PwC: Fewer but bigger M&A deals in Romania in Q1 2021

The number of deals on Romania's mergers and acquisitions (M&A) market contracted by 26% in the first quarter of this year compared to the same period in 2020, with only 42 transactions announced, compared to 53 in the same period last year.

However, the value of the transactions increased to over EUR 600 million, according to a report released by PwC Romania's M&A department.

"The year 2021 began with the announcement of important transactions on the M&A market in Romania, amid growing investor optimism. The aggregated value was slightly higher compared to the first quarter of 2020, due to a 30% increase in the average value of the transactions," explained Dinu Bumbacea, Partner and Leader of the Business Consulting department at PwC Romania.

He expects that the investment funds will return with more interest in the next period, as financial investors are among the most active players involved in ongoing transactions in Romania.

"The interest of the funds is increased considering both the level of available capital and the need to restructure the portfolios to capitalize on the new economic developments," added George Ureche, the leader of PwC Romania's M&A department.

(Photo courtesy of the company)