TRINITI Contributed to the Baltic M&A Study
The new “Baltic M&A Deal Points Study”, a survey conducted by the Estonian, Latvian and Lithuanian Private Equity and Venture Capital Associations between eight leading law firms, concluded that the majority of companies that buy Estonian, Latvian and Lithuanian enterprises also come from the Baltic and Nordic countries.
The proportion of Estonian buyers is up, with nearly a quarter of purchasers coming from the smallest Baltic state (with Lithuania representing 19% and Latvia 9% of the buyers). The overall diversity of buyers has also increased. At the same time, Finnish, Russian and US buyer numbers are notably down, compared to the situation a few years ago.
The majority of buyers, 66% are strategic buyers, while a quarter represent financial and private equity investors. Only 3% of buyers are private individuals – a number that is significantly down from the 13% in 2013. Management buyouts, always a small but interesting part of the market, represent another 3% of the transactions.
The survey analysed 168 Baltic M&A transactions done in the period of July 2013 to December 2015, a record number of deals ever viewed by the study. The most active economic sectors in the Baltic M&A market were construction and real estate, technology, financial services, and energy and utilities. The value of a typical Baltic M&A transaction remains in the EUR 1-5 million bracket.
The survey was based on contributions from eight leading pan-Baltic law firms and alliances: TRINITI, Cobalt, Ellex, Eversheds, Glimstedt, Primus, Sorainen and Tark Grunte Sutkiene.