Overview of M&A activity in the Baltics in 2020
2020 – a year of strength and resilience in face of challenges
Similar to the rest of the world, the Baltic M&A market has been reshaped by the COVID-19 pandemic that is bound to leave a lasting impact on most if not all major industries. The time period between May and August saw the most profound slowdown, but the market was quick to recover and the activity picked up at the end of the year, even outperforming the same period in 2019 in terms of deal volume. Still, the slowdown has left a visible mark, leading to a year-on-year decrease of 13% in the announced deal volume across the Baltics.
Announced deal volume by month, 2019-2020
Despite the difficult macroeconomic conditions, many industries have continued to generate significant interest from both strategic and financial investors. While M&A volumes in some sectors fell, other sectors flourished in the turbulent environment. The IT industry, for example, experienced a 19% increase in announced deal volume across the Baltics and maintained its strong leading position.
Industries with the highest number of announced deals
The number of financial investor transactions has been rising steadily since 2017, and reached a record high in 2020, being further fueled by the pandemic. At the same time, strategic acquisition volumes have been decreasing, illustrating a significant shift in the Baltic investor universe.
Largest deals in the Baltics
