Corporate Finance - Eastern Europe

The revenue in the Corporate Finance market is projected to reach US$4.05bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.15% resulting in a projected total amount of US$4.29bn by 2029.
The average transaction value in the Corporate Finance market amounts to US$172.70m in 2024.
From a global comparison perspective, it is shown that the highest revenue is reached United States (US$130.10bn in 2024).

Definition:

The Corporate Finance market encompasses activities and transactions related to the financial management of corporations. It involves raising capital through various means, such as issuing stocks or bonds, allocating resources to investment projects, managing risks, optimizing capital structure, and making strategic financial decisions, to maximize shareholder value. Additionally, it encompasses mergers, acquisitions, divestitures, and other transactions that impact a company's ownership structure and financial position. The Corporate Finance market plays a pivotal role in facilitating efficient allocation of capital and driving economic growth.

Structure:

The Corporate Finance market encompasses Investment Banking, Mergers and Acquisitions (M&As), and Initial Public Offerings (IPOs). Investment Banking covers the revenue generated by investment banks through their wide service offering when it comes to providing advice and expertise on various complex financial transactions. Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) entail a transactional overview of the consolidation, combination, or acquisition of companies, as well as when privately held companies transition to becoming publicly traded entities by issuing shares to the public for the first time, respectively.

Additional information:

The market contains the following KPIs: revenue, transaction value, number of transactions, and the average transaction size. Furthermore, the share of the top investment banks and top deals are provided for these KPIs to display even more insights into this market.

Investment Banking
Mergers and Acquisitions
Initial Public Offerings

Private Equity
Venture Capital

The Corporate Finance market is characterized by a heightened focus on sustainability, a need for agile risk management, and a rapid embrace of digital technologies. Adapting to evolving global policies, monitoring geopolitical events, and effectively managing exchange rate exposure are pivotal for companies aiming to thrive in this dynamic landscape.

Trends on the market:

Sustainability and ESG Focus: The Corporate Finance market continues to witness a significant shift towards sustainability and ESG (Environmental, Social, and Governance) considerations. Companies are increasingly recognizing the importance of aligning their business strategies with sustainable practices, driven by both regulatory pressures and investor demand.
Volatility and Risk Management: Volatility remains a prominent feature in the Corporate Finance landscape. Ongoing geopolitical uncertainties and sporadic economic shocks have heightened market volatility. Effective risk management strategies are paramount for businesses to navigate these turbulent waters. Diversification, hedging, and robust stress testing are critical tools in this environment.
Digitization and Technology Adoption: The rapid pace of digitization and technology adoption continues to reshape Corporate Finance. Fintech innovations, blockchain applications, and AI-driven analytics are becoming integral to financial operations. Companies that embrace and adapt to these technological advancements are positioned to gain a competitive edge.

Underlying Indicators:

Global Policies: Across the world, policies are exerting a substantial influence on the Corporate Finance market. Policy shifts towards sustainability, tax reforms, and trade regulations are key determinants of business strategies. Companies should maintain a proactive approach in anticipating and adapting to evolving policy landscapes .
Geopolitical Events: Trade tensions, geopolitical conflicts, and policy changes can have profound impacts on corporate operations and market dynamics, creating a significant source of market uncertainty. A vigilant approach to geopolitical developments is essential for effective risk mitigation.
Exchange Rates: Exchange rates continue to be a critical factor for multinational corporations. Fluctuations in currency valuations can significantly impact revenue, costs, and profitability. Companies should maintain robust currency risk management strategies, including hedging mechanisms, to mitigate the effects of exchange rate volatility.

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP). The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional Notes:

The market is updated twice per year in the event that market dynamics change.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Investment banks provide important services for companies, governments, and other institutions, with the purpose of acting as a mediator between the parties included. Most of the largest investment banks globally, also known as “bulge bracket banks”, are full-service banks, providing a wider range of services to clients in addition to underwriting and advisory services, such as sales and trading, research, and asset management services. The investment bankers are compensated for their services through fees, which can take various forms depending on the agreement, but is usually made up by a cash fee paid when the deal has been completed, a fixed monthly fee, a success fee as a share of the deal value, or a combination of these fee types.

Mergers and acquisitions have become integral to corporate growth, with deal activity consistently showing robust numbers even amidst global economic uncertainty. Companies are increasingly looking beyond organic growth, seeking acquisitions or mergers to gain access to new markets, diversify their portfolios, achieve synergies, or enhance technological capabilities. The value of global M&A deals worldwide amounted to 2.5 trillion U.S. dollars in 2023, with the United States being the most dynamic market and accounting for more than half of the total. China's M&A activity, while tempered by regulatory scrutiny and geopolitical tensions, has grown significantly: Chinese firms have been targeting sectors such as technology and healthcare, both domestically and internationally, to support their economic growth. Emerging markets such as India and Brazil have also become attractive M&A destinations, particularly in sectors like consumer goods, technology, and energy.

An initial public offering, also known as an IPO or a stock market launch, is a pivotal step in the journey of a company. It refers to the debut of a company's stock on a stock exchange and allows external investors to buy shares in the company. Going public can yield high returns for the company itself and its investors, but it can also be a gamble. In fact, the equity returns of IPOs were twice as large as those from NASDAQ investments or even SPAC mergers in 2020, but returns were negative in 2021. Additionally, the share of companies that are profitable post-IPO has fallen in recent years.

IPO activity in the United States has seen dramatic fluctuations in recent years. The peak in 2021 set a record, with approximately 135 billion U.S. dollars raised due to a surge in tech companies and Special Purpose Acquisition Companies (SPACs) going public. However, this rapid growth was followed by a stark downturn in 2022 and 2023, which led countries like China and India to emerge as the leading IPO market, despite the U.S. being home to the largest stock exchanges worldwide in terms of market capitalization. The New York Stock Exchange (NYSE) and the Nasdaq Stock Market are also the most popular exchanges for international companies, having the highest number of foreign firms listed.

Corporate Finance - Eastern Europe

Revenue

Transaction Value

Number of Transactions

Average Transaction Size

Analyst Opinion

Methodology

Financial

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Corporate Finance - Eastern Europe

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