Market Insights Financial Corporate Finance

Mergers and Acquisitions - Lithuania

Lithuania

The transaction value in the Mergers and Acquisitions market is projected to reach US$116.40m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 130.76% resulting in a projected total amount of US$268.60m by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$8.74m 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

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Currency

Analyst Opinion

The Mergers and Acquisitions market in Lithuania is experiencing a notable increase in activity.

Customer preferences: Lithuanian companies are increasingly looking to M&A deals as a strategic growth opportunity to expand their market presence, diversify their products or services, and enhance their competitive position. Additionally, foreign investors are attracted to Lithuania's growing economy, skilled workforce, and strategic location within the European Union.

Trends in the market: One prominent trend in the Lithuanian M&A market is the rise of cross-border transactions, particularly with other European countries. This trend is driven by the country's integration into the EU and the Eurozone, which has increased investor confidence and facilitated easier access to international markets. Moreover, there is a growing interest in technology and innovation-driven acquisitions as companies seek to stay competitive in the digital age.

Local special circumstances: Lithuania's relatively small market size and limited number of large corporations have led to a high level of competition among domestic companies. As a result, M&A activity is often seen as a strategic tool for companies to achieve economies of scale, access new technologies, or enter new markets. Additionally, the government's efforts to improve the business environment and attract foreign investment have further fueled M&A activity in the country.

Underlying macroeconomic factors: The stable economic growth, low inflation rates, and favorable business environment in Lithuania have created a conducive atmosphere for M&A deals. The country's strong focus on innovation, digitalization, and sustainability has also attracted interest from investors looking to capitalize on these emerging trends. Furthermore, the availability of financing options and supportive regulatory framework have contributed to the overall positive outlook for the M&A market in Lithuania.

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.