BULGARIA Trends and Developments Contributed by: Venelin Dimitrov and Iva Georgieva, Komarevski Dimitrov & Partners
Renewable energy and battery storage Bulgaria remains a regional leader in terms of solar irradiation and land availability, making it an attractive destination for renewable energy investments. • Investor appetite spans both operational assets and greenfield development projects, particularly in the 30–150 MW range. • There is increasing focus on: (a) hybrid projects that combine solar, wind and battery energy storage systems (BESS) – par - ticularly relevant in light of grid balancing needs; and (b) standalone BESS. • Bulgaria also benefits from low permitting costs, qualified engineering capacity, and access to EU funding instruments. PE and infra funds view energy as both a long-term play and a hedge against economic volatility. Invest - ments in renewables are also a means to achieving greener economy. M&A activity in this space has been further supported by a handful of notable large-scale transactions in 2024 and 2025, including platform investments exceeding EUR100 million (eg, United Group’s investment of EUR120 million in three PVPPs). IT and tech-enabled services The Bulgarian IT sector continues to mature – moving from low-cost outsourcing into product-based plat - forms, Software as a Service (SaaS) solutions, and niche enterprise service models. The country is now home to a number of scalable digital businesses with pan-European client bases: • PE firms are targeting product-first companies with strong engineering teams and high client retention rates; • buy-and-build strategies are increasingly used, especially in software development, IT outsourcing, DevOps and cybersecurity; and • management is experienced with international clients, and is open to post-transaction integration and growth planning. Notable transactions in this market – including acqui - sitions of small IT service providers by regional plat - forms – have signalled a clear path to consolidation.
but in fact the number of gaps is relatively small – offering growing predictability for institutional investors. • Exit potential: strategic buyers are showing renewed interest in the region, providing credible exit routes within reasonable holding periods. What does PE bring to the market? The increasing presence of PE has transformed the tone and structure of many Bulgarian deals. Both investors and entrepreneurs have become more attuned to the following: • professionalised deal processes – PE funds con - duct swift red-flag due diligence and lead the way in introducing international standards of documen - tation and execution; • value creation strategies – PE sponsors typically bring not only capital but also operational experi - ence, growth frameworks and M&A bolt-on play - books; • disciplined valuations – PE acquirers are less likely to overpay based on short-term trends and are more focused on long-term cash flows and exit pathways; and • management incentives– PE ownership often comes with structured incentive plans, including equity rollovers and earn-outs (mechanisms that align interests and reward performance). Impact on local sellers Founders and local business owners are becoming more familiar with PE-style transactions. While these deals can be more intensive in terms of preparation and execution, they are typically quicker and also offer more transparent negotiations, access to strategic growth capital and credible long-term partners. Sector Focus: Where PE Activity Is Concentrated Several sectors stand out in the Bulgarian M&A land - scape due to investor interest, business fundamentals and regional scalability. While transaction volumes are still modest in absolute terms, the depth and serious - ness of investment activity continue to grow in these areas.
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