M&A Activity in Greece Is Branching Out
The country’s outlook is inspired by strategy, fiscal stimulus and sector hopes.
16 June 2021
Going into Q3 2021, Greece is looking at an uptick in merger and acquisitions (M&A) deal activity. Attractive valuations, low interest rates, the pandemic-related European Union (EU) stimulus and the region’s vaccine-related recovery have all contributed to the upward trend.
In Greece, the government has committed to achieving four to seven percent economic gross domestic product (GDP) growth for 2022-2027. A focus on green initiatives, Energy and Renewables and private sector companies who survived the COVID-19 financial crisis is helping to push deal growth. In addition, banks have committed to reducing their NPE/NPL portfolios to single digits — delivering credit in the process.
The housing sector appears to be emerging from the pandemic largely unscathed. In the M&A market, foreign investors are seeing attractive valuations that — with adequate capital infusion— may create sector leaders when the economy starts growing.
Industry and Services have been deeply affected by the pandemic, but both sectors are showing opportunities. Real Estate, Energy, Food and Beverage, Logistics and Financial Services should pique interest as well. We provide a detailed forecast for Greece and EMEA as well as the global outlook in the Q3 2021 SS&C Intralinks Deal Flow Predictor.
The recovery of the tourism industry will be an important contributor to Greece’s GDP and will affect the mood going forward, as will banks meeting their strategic goals of NPE/NPL selloff and a capital increase.
As with most regions, the pandemic and remote work impacted due diligence and deal close times. Overall, though, Greece has a considerable amount to look forward to this quarter.
Jiannis has more than 25 years of experience in corporate finance, structured transactions and ship finance. He is a managing partner of JL Capital, a financial advisory firm, and country representative for SS&C Intralinks for Greece and Cyprus. Before JL Capital, he was a senior banker for more than 16 years with senior roles in the corporate and investment banking divisions of Piraeus Bank and Citibank International. Previously, he was the CFO of Cardiff Marine.