SLOVENIA Trends and Developments Contributed by: Bojan Šporar and Jože Stare, Rojs, Peljhan, Prelesnik & partners
acquisition of Adria Tehnika, d.o.o. These transactions reflect continued international interest in Slovenian companies with strong technological capabilities and export orientation. Private Equity as a New Driving Force in the M&A Landscape Private equity has become an increasingly important driver of M&A activity in Slovenia, particularly in the mid-market segment. Domestic funds such as Alfi, Advance Capital Partners, Prva Capital Partners and Generali Investments have played a central role in facilitating ownership transitions, consolidating frag - mented industries and professionalising management structures. The growth of private equity activity is closely linked to the availability of European capital. EU structural funds, support from the European Investment Fund and favourable regulatory initiatives have enabled the establishment and scaling of local fund managers. As a result, Slovenia has developed a relatively well- functioning private equity ecosystem for a market of its size, with multiple active players capable of execut - ing increasingly complex transactions. This has resulted in the accumulation of significant amounts of available capital (“dry powder”), which continues to drive investment activity despite peri - ods of macroeconomic uncertainty. The pressure to deploy capital within defined investment horizons encourages funds to actively seek opportunities, par - ticularly in sectors characterised by fragmentation or consolidation potential. Private equity investors in Slovenia typically focus on family-owned businesses facing succession challeng - es, as well as companies with strong export poten - tial. Many Slovenian companies are still founder-led or family-owned, and generational transition remains a key driver of deal flow. In this context, private equity funds often provide not only capital but also profes - sional management structures, governance improve - ments and strategic direction. Investment strategies increasingly emphasise buy- and-build platforms, operational improvements and international expansion. The Mass/Leder & Schuh
transaction illustrates this trend well, combining finan - cial sponsorship with a clear strategic growth trajec - tory aimed at creating a regional market leader. At the same time, exit activity has accelerated, with funds monetising earlier investments through strate - gic sales to international buyers. Transactions such as the sale of Trival Antene and Baby Center illustrate the growing maturity and international integration of Slovenia’s private equity ecosystem. Over time, this is expected to create a virtuous cycle, whereby success - ful exits generate capital and experience for reinvest - ment into new opportunities. Shifts in M&A Strategy Despite increasing M&A activity in 2025, acquirers have remained cautious in light of ongoing economic and geopolitical uncertainties and have adapted their M&A strategies accordingly. Buyers have generally become more selective in their acquisitions, placing greater emphasis on resilience, profitability and tan - gible value creation. The “valuation gap” between sellers and buyers con - tinues to be a central point of negotiation. While this gap has narrowed compared to the peak uncertainty of 2023, differences in price expectations remain a key challenge in many transactions. Sellers often anchor their expectations to historical valuations or peak mar - ket conditions, whereas buyers apply more conserva - tive assumptions reflecting current market risks. In certain industries, particularly software, technol - ogy and AI, 2025 has been a year of relatively strong valuations. Companies with scalable business mod - els, recurring revenues and strong growth prospects continue to attract significant investor interest and premium pricing. In more traditional industries, how - ever, sellers’ expectations do not always fully reflect market volatility, which can complicate negotiations and prolong deal timelines. While acquirers are still willing to pay “top euro” for clear growth potential, they increasingly require mechanisms to mitigate risk. This has led to a greater use of earn-outs and other contingent pricing mecha - nisms, which link a portion of the purchase price to the future performance of the target. Such structures
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