The value of M&A deals in Poland rose to about $20 billion in 2022.

The value of M&A transactions in Poland reached about $20 billion in 2022, up by about $1 billion from 2021, according to a study by consulting firm Bain & Company. Investor activity in this area will remain high this year, thanks in part to more attractive valuations of acquired companies amid a challenging macroeconomic and geopolitical environment.

Analysts expect downward pressure on company valuations to continue in the near term, Bain & Company reported.

"According to our analysis, last year the value of M&A transactions in Poland increased by about 7%, and their number by more than a third. After several months of uncertainty caused by the outbreak of war in Ukraine, investors have returned to buying, and we expect this increased activity to continue this year as well. This will be supported by falling asset valuations, especially in the technology and healthcare sectors," said Bain & Company partner Pawel Szreder.

According to the survey, the technology sector will remain the focus of investor interest.

The average price at which strategic investors bought companies last year fell globally to its lowest level in 10 years at 11.9 times EBITDA. A year earlier, investors paid an average of 15.4 times earnings, which was the highest level on record.

Among the largest transactions on the Polish market, in addition to those carried out by PKN Orlen, were the purchase of Lotos Paliwa by Hungary's MOL and the Gdansk Refinery by Saudi Aramco. Also important were exit transactions by private equity funds, resulting in the acquisition of PKP Energetyka by the Polish Energy Group and Inelo Group by Eurowag. A large transaction with a structure that is rare on the Polish market was also the management buyout of Empik Group by CEO Ewa Szmidt-Bielcarz.

Szreder pointed out that in the coming years there will be favorable investments in sectors that can benefit from the dynamic trend of building a zero-carbon economy.

"This applies not only to companies generating energy from renewable sources, but also to the broader electromobility, logistics or energy storage industry, " the Bain & Company partner concluded.

Source: Bain & Company and ISBnews