Market Insights Financial Corporate Finance

Mergers and Acquisitions - Bulgaria

Bulgaria

The transaction value in the Mergers and Acquisitions market is projected to reach US$1.08bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -29.63% resulting in a projected total amount of US$0.76bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$58.81m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

Market

Region

Region comparison

Currency

Analyst Opinion

The Mergers and Acquisitions market in Bulgaria is experiencing a surge in activity, driven by various factors influencing deal-making in the region.

Customer preferences: Companies in Bulgaria are increasingly looking to M&A deals as a strategic growth opportunity rather than relying solely on organic expansion. This shift in mindset is fueled by the desire to quickly enter new markets, access new technologies, or diversify their product offerings.

Trends in the market: One notable trend in the Bulgarian M&A market is the growing interest from foreign investors. International companies are attracted to Bulgaria's stable economic environment, skilled workforce, and strategic location within Europe. This influx of foreign capital is driving up the number of cross-border M&A transactions in the country.

Local special circumstances: Bulgaria's relatively small market size and fragmented business landscape create unique opportunities for M&A activity. Domestic companies often seek M&A deals as a way to achieve economies of scale, expand their market share, or gain a competitive edge. Additionally, the privatization of state-owned enterprises has opened up new avenues for M&A transactions in Bulgaria.

Underlying macroeconomic factors: The overall economic stability and growth prospects in Bulgaria play a significant role in shaping the M&A landscape. Favorable government policies, improving infrastructure, and a skilled labor force contribute to a conducive environment for M&A deals. Additionally, the country's integration into the European Union has increased investor confidence and facilitated cross-border transactions.

Methodology

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).

Additional Notes:

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