GREECE Law and Practice Contributed by: Stathis Orfanoudakis, Theodore Konstantakopoulos and Yolanda Antoniou-Rapti, Zepos & Yannopoulos
1. Market Trends 1.1 Technology M&A Market
incentives to promote investments in start-ups and more “traditional” technology companies, as well as R&D and innovation in general. Newly introduced Greek Law 5162/2024 aims to fur- ther enhance the existing tax incentives for angel investors investing in Greek start-ups and Greek venture capital funds as well, while also intro- ducing a new “start-up visa”. Local venture capital and private equity funds are also making their presence felt in the Greek technology market, with investments ranging from fintech and software as a service (SaaS) to cybersecurity and medtech. In the same context, institutional investors are becoming increasingly sophisticated and are constantly on the look- out for opportunities for potential synergies with their existing portfolio companies. 2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company 2.1 Establishing a New Company The Greek start-up ecosystem has transcended the boundaries of the country in recent years, with Greek-founded start-up companies being incorporated in various countries with a view to gaining better access to capital and strate- gic insights. However, the pool of Greek-based start-up companies has also seen a significant increase in recent years, as the country is stead- ily becoming a more attractive and investor- friendly destination. Greece is making its case as an emerging innovation hub and entrepre- neurs are now keener to start their companies in a jurisdiction that is rebuilding its kit of tools and incentives to promote tech and innovation.
The rise of numerous new technologies has been at the forefront of developments in the Greek market, including as a key factor behind the increase in M&A transactions concerning tech- nology companies. In line with global trends, the technology M&A market in Greece was charac- terised by a relative downturn in 2023. This was primarily attributed to factors such as macroeco- nomic events, inflation and high interest rates, while valuation gaps between sellers and buyers were stalling more than a few M&A workstreams. Nevertheless, the early optimistic predictions for 2024 appear to have been fulfilled and the Greek technology M&A market has been witnessing a significant uptick in deal volume and value, with TMT transactions leading the deal flow pace for another year and AI opportunities being on the radar of strategic M&A players. The market sentiment for the period ahead remains quite bullish and solidly based on the country’s ongoing economic stability, which led to Greece’s return to investment grade after 13 years. M&A activity has already benefited from these developments and is expected to continue to do so. 1.2 Key Trends Technology and innovation have become key drivers of M&A activity in Greece in recent years. The transition to digitised business models – especially following the COVID-19 pandemic, the rapidly developing innovative tools acceler- ating M&A workstreams, and the increased pool of deal opportunities (whether as regards start- ups or global tech powerhouses) – are just some of the manifestations of this continuing trend. The Greek State keeps passing legislation and
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