LEBANON Trends and Developments Contributed by: Joseph Nasrallah, Jad Skaff and Mia Chbeir, HNS Legal
HNS Legal 3221 Building Presidential Palace Road Baabda Lebanon Tel: +961 5 455 199 Email: info@hnslegal.com Web: www.hnslegal.com
Corporate M&A in Lebanon: History, Challenges and Opportunities Lebanon has always been a hub of entrepreneurship, fuelled by a dynamic private sector. M&A has tradi - tionally been a popular choice for businesses seeking to grow, to expand into new markets, and to establish synergies and strategic partnerships, even though the country’s business environment is largely shaped by family-owned businesses, where maintaining a com - pany’s legacy and stability takes precedence over pursuing aggressive deals. However, this situation has drastically changed over the last few years, and the M&A landscape in Leba - non has faced a wave of hurdles, both domestic and regional. The prolonged deterioration of political systems for years on end, culminating in the devastating econom - ic crisis of 2019, have created a hugely challenging environment for deal-making. Widespread immigra - tion, failure of the banking sector, an uncontrollable surge in inflation, the free-fall of the national currency and rampant social protests have combined to create a highly volatile environment, placing both foreign and local investors on guard. Added to these challenges are the recent armed conflict with Israel, and ongo - ing regional tensions that have plagued the landscape even further. As of 2026, the market has also shifted away from the so-called “lollar economy” (due to US dollars being trapped in the Lebanese banking system) towards a predominantly “fresh USD” transactional environ -
ment. Valuation methodologies have consequently evolved. Target companies are now typically required to present dual accounting records or “fresh-based” audited financials. In parallel, a significant portion of transactions are structured through offshore holding vehicles to mitigate local transfer risks and preserve exit liquidity abroad. M&A market evolution and developments in previous years Following the economic and financial crisis described above, the M&A market evolved in terms of form and sector focus. In particular, the banking sector crisis and resulting liquidity constraints altered investor behaviour and transaction structuring, as access to financing became severely limited and companies increasingly relied on alternative capital sources. Undeterred by the challenges, certain industries attracted targeted attention from foreign and local investors. In the technology sector, digital start-ups in telehealth, e-commerce and fintech began to attract interest from private equity and venture capital firms. Investors from the Lebanese diaspora viewed these businesses as long-term strategic opportunities capa - ble of generating foreign-currency revenues. Activity also increased in the real estate sector, particularly through the acquisition of distressed properties fol - lowing the sharp decline in asset values. Investors shifted their attention due to significantly reduced property prices. The healthcare sector likewise expe - rienced consolidation, with private clinics, pharma - cies and diagnostic centres combining resources to maintain operational sustainability.
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