Mergers and Acquisitions (M&A) Index Poland Report

Poland "on the radar" of foreign funds

The seen influx of foreign investors into Poland, including new funds, is a result of the changes that have taken place in Europe and the world. Many markets have closed. The UK market is uncertain (Brexit, the fall of the pound), Turkey is no longer attractive, and the Russian market is also closed. The amount of capital has not decreased, but the markets have narrowed, so capital is going where it is relatively safe. Money that could have been invested in other markets is flowing into ours. Investments in Poland are undoubtedly favoured by the macroeconomic situation, which is stable and definitely better perceived than immediately after the 2015 elections, but also by economic growth and a well-functioning banking system. Investment risks are perceived similarly to those in Western European countries. What dampens investors' enthusiasm are the legal changes that have been introduced for several months, assessed by many experts as damaging to the economy and, moreover, unconstitutional. Therefore, investors are very much monitoring our market and checking every piece of information in the foreign press about the legal and economic situation in Poland. We forecast that Polish capital will increasingly start to take over companies in Europe. Large transactions will also be observed here. There is capital in Poland, over one trillion zlotys of savings in households, in deposits. It is a matter of time and good intentions to finally invest it. In Q2 2017, there were already 10 such transactions - we bought mainly in the West (Germany, France).