Global M&A Trends Report |
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Cyprus |
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(Europe)
Firm
Chrysostomides Advocates & Legal Consultants
Contributors
Chryso Pitsilli-Dekatris |
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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 Cyprus are:
Our region is greatly affected by the economic and political implications of the wars in Ukraine and Israel. The volatility of the economy, the uncertainty over future prospects, and higher inflation and costs, impact cross-border transactions in varied ways, both positively and negatively. From the practitioners' perspective, these are translated into more stringent (and lower) curbs on fees, theoretically limited scope or higher-level due diligence exercises which eventually turn out to be full-blown due diligence exercises and slower completion processes. |
| 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 Financial Services 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, we have witnessed increased M&A activity in Q4 of 2023 which we anticipate will continue into 2024. |
| With respect to public M&A, what are three things on top of mind for M&A practitioners in your jurisdiction? | Being a small jurisdiction, there are not many public M&A transactions to compare. |
| With respect to public M&A, where does your jurisdiction see most deal activity? | Typically public M&A would tend to be mid-market to top-tier, however, being a small jurisdiction, there are not many public M&A transactions to compare. |
| With respect to public M&A, what sector sees the most deal activity in your jurisdiction? | Most public M&A deal activity occurs in the Financial Services sector, however, being a small jurisdiction, there are not many public M&A transactions to compare. |
| 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 in 2023, being a small jurisdiction, there are not many public M&A transactions to compare. |
| Please share any other insights with respect to M&A in your jurisdiction: | In the context of cross-border M&A transactions, the Cypriot perspective/contribution was traditionally small, but key, in the overall project, mainly because in most cases, the Cypriot entity involved is either a holding company or an SPV. This does not lessen the pressure on the firm which needs to dedicate sufficient resources to be able to constantly follow the non-Cypriot aspects of the project as well. This becomes particularly challenging when one takes into account the trends outlined in the response to Question 1. Post-COVID-19, with the increase in remote working practices, employment law advice has become a significant part of M&A transaction structuring and implementation. |
Global M&A Trends Report
Cyprus
(Europe) Firm Chrysostomides Advocates & Legal ConsultantsContributors Chryso Pitsilli-Dekatris
Updated 30 Jan 2024Three things top of mind for private M&A practitioners in Cyprus are:
- General: economic environment
- Commercial: valuation expectation gaps
- Legal/general: transaction structuring
Our region is greatly affected by the economic and political implications of the wars in Ukraine and Israel. The volatility of the economy, the uncertainty over future prospects, and higher inflation and costs, impact cross-border transactions in varied ways, both positively and negatively. From the practitioners' perspective, these are translated into more stringent (and lower) curbs on fees, theoretically limited scope or higher-level due diligence exercises which eventually turn out to be full-blown due diligence exercises and slower completion processes.
Most private M&A deal activity is categorized as mid-market.
Most private M&A deal activity is seen in the Financial Services sector.
Private M&A deal volume in 2024 is predicted to be greater than 2023 deal activity, we have witnessed increased M&A activity in Q4 of 2023 which we anticipate will continue into 2024.
Being a small jurisdiction, there are not many public M&A transactions to compare.
Typically public M&A would tend to be mid-market to top-tier, however, being a small jurisdiction, there are not many public M&A transactions to compare.
Most public M&A deal activity occurs in the Financial Services sector, however, being a small jurisdiction, there are not many public M&A transactions to compare.
Public M&A deal volume in 2024 is predicted to be the same as in 2023, being a small jurisdiction, there are not many public M&A transactions to compare.
In the context of cross-border M&A transactions, the Cypriot perspective/contribution was traditionally small, but key, in the overall project, mainly because in most cases, the Cypriot entity involved is either a holding company or an SPV. This does not lessen the pressure on the firm which needs to dedicate sufficient resources to be able to constantly follow the non-Cypriot aspects of the project as well. This becomes particularly challenging when one takes into account the trends outlined in the response to Question 1. Post-COVID-19, with the increase in remote working practices, employment law advice has become a significant part of M&A transaction structuring and implementation.