Foreign Investments in Central and Eastern Europe: M&A Opportunities
Central and Eastern Europe (CEE) has become a key destination for mergers and acquisitions (M&A), offering a strategic location, expanding markets, and attractive investment conditions. Companies seeking growth and expansion find in CEE not only cost advantages but also a dynamic business environment supported by EU integration, skilled labor, and competitive regulations.
Why CEE Attracts M&A Deals
CEE remains an attractive region for M&A activity, with countries such as the Czech Republic, Poland, and Hungary benefiting from consistent foreign direct investment (FDI). Recent trends show that investors are increasingly focusing on sectors such as technology, energy, and manufacturing, where innovation and digital transformation are key drivers.
FDI Trends in CEE (2020–2024) (Values in million USD) Finalized data confirm stable foreign investment flows in the region, with Poland and the Czech Republic maintaining strong investor confidence. Preliminary indicators for 2023 and 2024 suggest resilience despite global economic challenges such as inflation and geopolitical uncertainties.
| Country | 2020 | 2021 | 2022 (final) | 2023 (est.) | 2024 (forecast) |
| Czech Republic | 6,246 | 10,844 | 10,951 | 12,000 – 12,500 | 13,000 – 13,500 |
| Hungary | 2,594 | 5,608 | 6,311 | 6,800 – 7,200 | 7,500 – 8,000 |
| Poland | 12,518 | 24,788 | 24,795 | 25,000 – 25,500 | 27,000 – 28,000 |
| Romania | 2,952 | 9,182 | 12,277 | 13,000 – 13,400 | 14,000 – 15,000 |
| Slovakia | -529 | 2,174 | 2,287 | 2,400 – 2,600 | 2,700 – 3,000 |
| Bulgaria | 2,345 | 1,668 | 3,668 | 3,800 – 4,100 | 4,300 – 4,700 |
Sources: UNCTAD (2020–2022); estimates for 2023–2024 based on IMF, EBRD, and national central banks.
Key M&A Drivers in the Region
- Strong investor confidence – Poland and the Czech Republic continue to attract high FDI volumes, signaling stability and long-term potential for acquisitions.
- Sectoral growth in technology and energy – Digital transformation and green energy initiatives create new M&A opportunities.
- Strategic EU access – Companies investing in CEE benefit from regulatory alignment with EU standards and access to a single market of 450 million consumers.
How Ecovis Supports M&A Success
Navigating the M&A landscape in CEE requires expert knowledge of local markets, legal frameworks, and integration strategies. Ecovis provides comprehensive support throughout the transaction process:
- M&A Transaction Advisory – Identifying investment targets or potential buyers and structuring deals for maximum efficiency.
- Legal and Regulatory Compliance – Ensuring full adherence to national and EU laws, minimizing risks during acquisitions.
- Due Diligence & Risk Assessment – Evaluating financial and operational health of target companies.
- Post-Merger Integration – Supporting companies in aligning corporate cultures, streamlining processes, and maximizing synergies.
Sustainability as a Competitive Advantage
Sustainability is becoming a core component of investment strategies. M&A deals that align with ESG (Environmental, Social, and Governance) principles are increasingly favored by investors, enhancing reputational and long-term business value.
Outlook for M&A in CEE
While CEE continues to offer attractive M&A opportunities, economic fluctuations and political shifts require companies to remain agile and well-prepared. Businesses that act proactively, embrace sustainability, and engage with experienced advisors like Ecovis will position themselves as leaders in this evolving market.
Conclusion
The CEE region presents exciting M&A prospects for companies looking to expand and innovate. With the right strategic approach and trusted partners like Ecovis, businesses can unlock new growth opportunities and establish themselves as key players in Europe’s investment landscape.
