General Overview for Investors in Hungary’s M&A Market

In recent years, Hungarian M&A market activity has intensifed with several market-driven and some state-driven transactions. According to research, the number of Hungarian companies interested in merger and acquisition transactions is increasing. These companies – mostly well-developed companies with established markets and good management teams – are looking for potential strategic or fnancial buyers and some are also looking for acquisitions. The motivations of the sellers vary: generational change, retirement, market barriers to further growth, and exit strategies of venture capital frms are among the most common reasons. After the fnancial crisis, operational effciency was the main focus for companies, but as the global and local markets are now more stable, companies are willing to invest their cash reserves. These companies are sitting on a record amount of cash and uninvested capital and they need to make that capital work, especially in today’s low-interest-rate environment, to support strategic growth.