The macroeconomic environment and available funding provide a particularly grateful environment for management buy-outs in the Baltics

October 2, 2018

 

In Prudentia’s M&A Folio Industry Expertise we focus on management buy-out (MBO) deals, which in last years have gained popularity in public debate, thanks to many successful examples.

 

After several years of constant decrease both in terms of value and number of Europe’s MBO deals, the pace of the first half of 2018 shows that MBO deals are regaining their popularity, which was also observed in the post-crisis period. A similar situation has developed in the Baltics, especially in Latvia and Lithuania, where the interest of management in such M&A deals, favorable macroeconomic environment combined with the willingness of venture capital funds to finance such deals have facilitated an increase in MBO deal count.

 

Particularly notable MBO deals in recent years in the Baltics are the management acquisitions of Depo DIY and BR Group (previously - Fazer Amica). Since realization of these MBO deals both companies experienced a very rapid increase in their turnover and value, becoming leading companies in their industries in a short period of time.

 

It is possible to read the full Prudentia M&A Folio here: Prudentia M&A Folio

 

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