Romania is expected to see an increased interest from investors looking for M&A deals, both investment funds and strategic investors, a recent survey by CMS Cameron McKenna found. “The main attractive sectors this year are energy (both green and conventional), banking & finance (exits, sales and portfolio restructurings), FMCG and industrial,” explained Horia Popescu, partner within the Corporate Department of CMS Romania law firm.
The study surveyed over 1,000 M&A deals over the past four years, and reveals the comeback of a positive trend for sellers in the regional M&A market, after last year was more favorable to buyers. Compared to 2009, last year saw a 25 percent increase in M&A deals at an European level, a trend that is expected to continue this year as well. At the same time, the tendency to transfer the contractual risk back to buyers is unlikely, as the market is more favorable to sells, the study finds.
“The risk profile of the CEE region as an emerging market continues to be reflected in the terms and conditions of the M&A deals. Still, as the activity in this sector intensifies, risk allocation is normalizing. I think we can say that in 2011 we will see an evening out of conditions for sellers and buyers,” explained Helen Rodwell, CEE head of Corporate Practice.
According to the study, arbitration remains the main dispute resolution mechanism in CEE (76 percent in the region vs. 33 percent in Europe in 2010). Earnout transactions in CEE were rare (only 8 percent), while the non-compete clauses were used a lot less often than in the rest of Europe.
The yearly study on M&As included six European regions: UK, German countries (Austria, Germany and Switzerland), France, Benelux (Holland and Belgium), CEE (Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, Russia, Slovakia and Ukraine), and Southern Europe (Italy and Spain).