EY has analyzed the attitudes of Polish managers toward mergers and acquisitions. The primary drivers of acquisitions are the desire to accelerate growth (56%) and market expansion (40%), while 30% of sellers primarily aim to adapt to changing market conditions. The vast majority of decision-makers who opted for M&A view the process positively.
In a rapidly evolving business landscape, Polish companies are increasingly adopting mergers and acquisitions (M&A) strategies to accelerate growth and enhance their market competitiveness. EY Poland has explored managers’ motivations for buying and selling companies, the challenges they face during transactions, and key factors to consider in M&A processes. The resulting report offers a unique knowledge compendium for the Polish market, revealing some surprising insights.
The report provides an in-depth analysis of Polish managers’ approaches to various aspects of M&A, helping to understand trends and factors shaping the domestic M&A market. “We hope that the findings from our research will be helpful for companies considering M&A as a growth strategy, including smaller entities just exploring this tool. We want managers to realize that capital transactions can lead to more effective ways of achieving their business goals, and risks can be managed through strategic planning and appropriate expertise,” said Paweł Bukowiński, Managing Partner of the Strategy and Transactions Department at EY Poland.
Motivations for Transactions
Organic growth is often too time-consuming and costly, making the acquisition of existing entities or technologies a more efficient and less risky option. The study shows that 56% of firms cite accelerated growth as the key reason for engaging in M&A. Market share growth ranks second (40%), while 38% emphasize scaling operations and revenue. Acquiring customer portfolios (36%) and new technologies (33%) also rank high on the list of motivations. Surprisingly, only 5% of firms identified acquiring a foreign entity to enter new, hard-to-access markets as a priority.
The situation is quite different for firms that decided to sell part or all of their business. The study reveals that the most common reason for selling, cited by nearly one-third (30%) of respondents, is the need to adapt to new market conditions. For 26%, selling provided financial resources for new objectives, while 23% found selling more profitable than continuing operations. Additionally, 22% sold as part of a long-term market exit strategy. One in five firms (20%) sold due to a lucrative buyout offer. Lack of profitability and weak growth prospects drove 18% of firms to sell, while 16% cited personal or random circumstances.
Regardless of whether a company is buying or selling, conducting a thorough strategic analysis is crucial to understanding how business challenges and needs can be addressed through acquisition or sale. “According to firms conducting transactions, the support of an experienced M&A advisor can be invaluable, helping to define realistic goals, financial expectations, identify suitable partners, and increase the likelihood of a successful transaction,” said Grzegorz Cywiński, Partner at EY Poland, Leader of the Transactions & Corporate Finance Team.
Differences Between Buyers and Sellers
The EY study shows that acquisitions are typically well-thought-out strategic decisions, while sales more often respond to emerging market opportunities. A significant 73% of buyers view acquisitions as part of a long-term strategy (25 percentage points more than sellers), while 52% of sellers seize market opportunities (12 percentage points more than buyers, at 27%).
Differences also emerge in satisfaction levels with transactions. Companies that engaged in M&A generally rate the process highly – 98% of buyers and 90% of sellers gave it positive reviews. Simultaneously, 62% of respondents rated their satisfaction as “moderately high,” while 10% of sellers rated the process “moderately low.” Notably, managers on the acquiring side pointed to poor preparation by the acquired entity (33%) as the main issue during the process.
In today’s dynamic business environment, the ability to respond quickly to changing market conditions is crucial, but it must be balanced with thorough preparation and strategic planning. This involves not only analyzing one’s goals and capabilities but also understanding the value and potential of the target entity. “Combining flexibility with preparation enables companies to capitalize on market opportunities and minimize risks associated with M&A,” said Jacek Byrt, Partner at EY Poland, Leader of EY-Parthenon, Transaction Strategy & Execution in Poland.
About the Study
The M&A Perspectives study was commissioned by EY and conducted by CubeResearch on a targeted sample of 388 decision-makers (CEOs, board members, CFOs, and business owners) in companies ranging from 51 employees to corporations with over 1,000 employees. The research took place between June and July 2024 using combined CATI (telephone interviews) and CAWI (online interviews) methods. Participants included companies that had completed M&A processes and those planning to undertake them.
