Number of private equity deals in Romania 2017-2019

The number of private equity deals closed in Romania considerably increased from 2017 to 2019. In 2019, there were 23 private equity deals completed, nearly twice as much compared to the number of deals in 2018. Moreover, the volume of PE transactions in the Central and Eastern European region peaked in 2020 at 319 deals.

Value of private equity deals

Despite the number of PE deals peaking in Romania in 2019, the value of PE deals was considerably smaller compared to the previous years. In other words, the value of PE deals amounted to 731 million U.S. dollars in 2017, and subsequently dropped to 120 million U.S. dollars by 2019. Additionally, 39 companies benefitted from private equity investments, as well as from venture capital funds in 2019. The cumulated value of PE transactions and venture capital funds in Romania was estimated to having exceeded one billion euros in 2020.

Challenges

With respect to the preferred exit strategies, most of investors, as well as legal and financial advisors, stated that regardless of the type of transaction, it all comes down to the business owner’s willingness to sell. At the same time, specialists advised caution concerning the overall deal activity in the next 12 months. In other words, according to the results of a survey conducted by KPMG Romania, substantial differences in price expectations and the lack of suitable targets could inhibit the deal activity in the future.