Global M&A Trends Report |
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Bulgaria |
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(Europe)
Firm
Penkov, Markov & Partners
Contributors
Boris Lazarov |
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| With respect to private M&A, what are three things on top of mind for M&A practitioners in your jurisdiction? | Three things top of mind for private M&A practitioners in Bulgaria are:
Since 2022, there has been a slowdown mainly among buyers due to the rate hikes and more expensive financing, but there has been no dramatic decline. I think that the funds have become much more selective in their potential transactions. In the last quarter of 2023, the private equity funds closed a lot of transactions in Bulgaria, so this is a good indicator that we can expect a busier 2024 in terms of M&A deals. I think that one of the challenges in this year's transactions is the big valuation gap between the buyers and the sellers. Some sellers have maintained expectations closer to peak valuation levels in 2021 and early 2022, while we are seeing significant variation in how buyers are bidding, of course, depending on their risk appetite. Probably the biggest buy-side driver would be the availability of undervalued deal targets, whilst on the sell-side it is expected to be distressed situations. |
| With respect to private M&A, where does your jurisdiction see most deal activity? | Most private M&A deal activity is categorized as mid-market. |
| With respect to private M&A, what sector sees the most deal activity in your jurisdiction? | Most private M&A deal activity is seen in the Energy sector. |
| What are your predictions for private M&A deal volume in your jurisdiction during 2024? | Private M&A deal volume in 2024 is predicted to be greater than 2023 deal activity. At the end of 2023, the private equity funds resumed their activities in the M&A sector and closed a lot of transactions. Our clients are focusing on initial due diligence on various sectors and will continue their M&A expansion throughout 2024. |
| With respect to public M&A, what are three things on top of mind for M&A practitioners in your jurisdiction? | Three things top of mind for public M&A practitioners in Bulgaria are:
In Bulgaria, public M&A transactions are very rare, however, the items mentioned above are applicable. |
| With respect to public M&A, where does your jurisdiction see most deal activity? | Most public M&A deal activity is categorized as mid-market. |
| With respect to public M&A, what sector sees the most deal activity in your jurisdiction? | Most public M&A deal activity is seen in the Energy sector. |
| What are your predictions for public M&A deal volume in your jurisdiction during 2024? | Public M&A deal volume in 2024 is predicted to be the same as 2023 deal activity, mainly due to the rather low liquidity of the Bulgarian Stock Exchange. |
| Please share any other insights with respect to M&A in your jurisdiction: | Nothing additional to add. |
Global M&A Trends Report
Three things top of mind for private M&A practitioners in Bulgaria are:
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General: economic environment
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Commercial: valuation expectation gaps
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Regulatory: national security and foreign investment restrictions
Since 2022, there has been a slowdown mainly among buyers due to the rate hikes and more expensive financing, but there has been no dramatic decline. I think that the funds have become much more selective in their potential transactions. In the last quarter of 2023, the private equity funds closed a lot of transactions in Bulgaria, so this is a good indicator that we can expect a busier 2024 in terms of M&A deals.
I think that one of the challenges in this year's transactions is the big valuation gap between the buyers and the sellers. Some sellers have maintained expectations closer to peak valuation levels in 2021 and early 2022, while we are seeing significant variation in how buyers are bidding, of course, depending on their risk appetite. Probably the biggest buy-side driver would be the availability of undervalued deal targets, whilst on the sell-side it is expected to be distressed situations.
Most private M&A deal activity is categorized as mid-market.
Most private M&A deal activity is seen in the Energy sector.
Private M&A deal volume in 2024 is predicted to be greater than 2023 deal activity. At the end of 2023, the private equity funds resumed their activities in the M&A sector and closed a lot of transactions. Our clients are focusing on initial due diligence on various sectors and will continue their M&A expansion throughout 2024.
Three things top of mind for public M&A practitioners in Bulgaria are:
-
General: economic environment
-
Commercial: valuation expectation gaps
-
Regulatory: national security and foreign investment restrictions
In Bulgaria, public M&A transactions are very rare, however, the items mentioned above are applicable.
Most public M&A deal activity is categorized as mid-market.
Most public M&A deal activity is seen in the Energy sector.
Public M&A deal volume in 2024 is predicted to be the same as 2023 deal activity, mainly due to the rather low liquidity of the Bulgarian Stock Exchange.
Nothing additional to add.