Market Insights Financial Corporate Finance

Mergers and Acquisitions - Ethiopia

Ethiopia

The transaction value in the Mergers and Acquisitions market is projected to reach US$21.84m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -16.44% resulting in a projected total amount of US$18.25m by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$6.16m 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).

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Currency

Analyst Opinion

The Mergers and Acquisitions market in Ethiopia is experiencing a notable uptick in activity.

Customer preferences: Ethiopian customers in the M&A market are increasingly looking for opportunities to expand their businesses, diversify their portfolios, and gain a competitive edge in the market. They are seeking strategic acquisitions that can provide them with access to new technologies, markets, and talent to drive growth and innovation.

Trends in the market: One of the key trends in the Ethiopian M&A market is the growing interest from foreign investors. International companies are eyeing Ethiopia as an attractive investment destination due to its large and growing consumer market, improving business environment, and strategic location in Africa. This influx of foreign interest is driving up competition for M&A deals and pushing valuations higher.

Local special circumstances: Ethiopia's government has been implementing economic reforms to liberalize the market and attract foreign investment. These reforms include privatizing state-owned enterprises, opening up key sectors to private investment, and improving the ease of doing business. As a result, there is a surge in M&A activity as both local and foreign investors seek to capitalize on the new opportunities emerging in the market.

Underlying macroeconomic factors: The Ethiopian economy is experiencing steady growth, driven by investments in infrastructure, agriculture, manufacturing, and services. This growth is creating a conducive environment for M&A deals as companies look to capitalize on emerging opportunities and scale their operations. Additionally, the country's young and growing population presents a lucrative consumer market, further attracting investors to the M&A space.

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.