The Southeast European M&A Report | July 2025
A mid-year look at the M&A activity across Southeast Europe, emerging deal trends and drivers
Southeast Europe’s M&A environment is undergoing structural recalibration. While aggregate volumes remain 10–15% below peak levels, deal activity is increasingly shaped by EU-driven priorities — with capital concentrating in energy transition, digital infrastructure, and logistics platforms. This shift is supported by over €30 billion in committed EU convergence funding through 2027.
The report highlights three defining forces at play:
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Strategic acquirors now drive nearly 70% of deal flow, led by cross-border consolidation in TMT and industrial services
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Private equity is selectively re-entering the region via platform strategies focused on governance-ready assets
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Development institutions (e.g. EBRD, IFC) are unlocking complex transactions through hybrid capital structures, particularly in energy-linked deals
While systemic risk is gradually declining — with examples such as Croatia’s investment-grade status and Bulgaria’s Eurozone progress — execution challenges persist. Valuation mismatches, limited target readiness, and operational complexity continue to define premium segments such as renewables, data infrastructure, and regulated assets.
Albania, along with Kosovo, is seeing increased momentum driven by succession-driven transactions, platform acquisitions, and investor focus on digital infrastructure. Though often less visible in headline volumes, these markets are becoming more relevant in the context of region-wide strategic repositioning.
