The average value of transactions for 2019 is estimated between 40 and 50 million, slightly above the average of 40 million in the last decade.
At the same time, transactions with bad credit portfolios dropped significantly last year to about 1 billion euros, and this year the activity will be very low.
"Despite the harsh fiscal stance of early 2019, we do not expect major consequences on the merger and acquisitions market in the first half of this year, but rather towards the end of the year when, depending on the macroeconomic context, the window of opportunity could close. We expect the most dynamic sectors of the M & A market in 2019 to be technology, retail, pharmaceutical and medical services, consumer goods and real estate", said Ioana Filipescu, M & A Consultant, Deloitte Romania.
The M & A market in 2018, estimated by Deloitte Romania between 3.8 and 4.3 billion euros, including unlisted transactions, was less transparent than in previous years, with a significant decrease in the number of value transactions communicated.
The market for declared value transactions continued to be dominated by strategic investors in 2018, which were involved in 56% of transactions, while private equity firms found 39% of the volume of traded value.
Banks in Romania have sold non-performing loans (NPLs) with a face value of 1 billion euros in 2018, according to estimates by Deloitte Romania, significantly below the level of 2017, of 2.1 billion euros.
"The significant decrease in the volume of NPL transactions in 2018 is the result of a reduction in the volume of bad loans and legislative changes. We are still expecting a decrease in the volume of NPL portfolios in 2019 given the current context, although banks have a a non-performing credit balance sheet estimated at 3-4 billion euros, as well as a similar off-balance sheet volume", said Radu Dumitrescu, Partner Support Services in Transactions, Deloitte Romania. (source: profit.ro)