Market Insights Financial Corporate Finance

Mergers and Acquisitions - Latvia

Latvia

The transaction value in the Mergers and Acquisitions market is projected to reach US$144.70m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 29.72% resulting in a projected total amount of US$187.70m by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$15.19m 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 Latvia is experiencing a steady growth trajectory, reflecting the evolving business landscape in the country.

Customer preferences: Latvian companies are increasingly looking to M&A activities as a strategic tool to expand their market presence, diversify their offerings, and gain a competitive edge. This trend is driven by the desire to access new technologies, enhance operational efficiencies, and capitalize on synergies with potential partners.

Trends in the market: One notable trend in the Latvian M&A market is the rising interest from foreign investors seeking opportunities in the country. This influx of foreign capital is fueling deal activities across various sectors, including technology, manufacturing, and services. Additionally, there is a growing trend towards cross-border M&A deals, indicating a more interconnected global business environment.

Local special circumstances: Latvia's strategic location as a gateway between East and West makes it an attractive destination for M&A activities. The country's membership in the European Union further enhances its appeal by providing access to a larger market and regulatory framework. Moreover, the government's efforts to improve the business environment through regulatory reforms and incentives are creating a favorable ecosystem for M&A transactions.

Underlying macroeconomic factors: The overall economic stability and growth prospects in Latvia are supporting the momentum in the M&A market. Favorable macroeconomic indicators, such as GDP growth, low inflation, and increasing consumer confidence, are instilling optimism among investors and businesses alike. Additionally, the availability of financing options at competitive rates is facilitating deal-making activities in the country.

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.