Mergers and Acquisitions: Is Poland a Risky Market?
The article discusses the burgeoning M&A market in Central Eastern Europe, particularly in Poland, highlighting the increasing relevance of insurance policies that cover undisclosed risks in such transactions.
The article explores the revitalization of the mergers and acquisitions (M&A) market in Central Eastern Europe, with a specific focus on Poland. It outlines the factors contributing to this resurgence, which include economic stability, increased investor interest, and favorable regulatory conditions. Moreover, it highlights the growing popularity of insurance policies that protect against undisclosed risks in M&A transactions, marking a shift in how deals are structured and negotiated in the region.
A key point made in the article is the rising demand for warranty and indemnity (W&I) insurance policies among Polish firms. This shift mirrors trends seen in Western Europe, where such insurance has become a standard practice in M&A transactions. The article points out that more claims are being reported to insurers, signaling a shift in market dynamics and perhaps a greater willingness among firms to pursue M&A opportunities with the safety net these policies provide.
Furthermore, the article examines how changing structures within the Polish M&A market are influenced by various sectors, indicating that certain industries are more inclined to utilize W&I insurance than others. As the M&A landscape continues to evolve in Poland and the wider CEE region, understanding these trends will be crucial for stakeholders looking to navigate the changing economic landscape and mitigate risks associated with M&A activities.