AUSTRIA Law and Practice Contributed by: Clemens Hasenauer and Albert Birkner, CERHA HEMPEL
CERHA HEMPEL Rechtsanwälte GmbH Parkring 2 A-1010 Vienna Austria Tel: +43 1 514 35 0 Fax: +43 1 514 35 35 Email: office@cerhahempel.com Web: www.cerhahempel.com
1. Trends 1.1 M&A Market
1.2 Key Trends Strategic investors remain the driving force of the Austrian M&A market and account for the vast majority of transactions. In 2024, 220 out of 245 transactions involved strategic inves - tors, compared to 212 in 2023. The involvement of financial investors (private equity or venture capital firms) increased significantly from 15 transactions (2023) to 25 transactions (2024). Nevertheless, private risk capital remains a niche phenomenon in Austria, accounting for just 10% of transactions and 16% of the total volume. In 2024, the trend of rising company insolvencies continued for the third consecutive year. The number of insolvencies increased by 22% com - pared to 2023. The sectors most affected remain trade, real estate, construction, and hospitality. High financing costs due to persistently high interest rates, high energy costs, geopolitical uncertainties, and stricter regulatory require - ments will continue to weigh on Austria’s market dynamics in 2025. Whether the M&A market will see a recovery in 2025 remains uncertain. Inter - est rate cuts, reduced regulations, and a pro- business stance by the U.S. government could support transactions, while significant capital reserves in the private equity sector ( “dry pow-
Overall, the Austrian M&A market showed signs of stabilisation in 2024 but remained below its historical level. The number of deals with Aus - trian involvement increased conspicuously, whereas the total volume of deals decreased significantly: in 2024, there were 245 M&A trans - actions involving Austrian companies, compared to 227 in 2023, an increase of almost 8%. The transaction volume, however, decreased con - siderably by 24,2%, falling from EUR 6.6 billion (2023) to EUR5.0 billion (2024). The absence of mega-deals (over EUR1 billion deal value) was particularly noticeable. In the wake of uncertain - ties in recent years, the market has stabilised at a lower level, which could become the “new normal” in the medium term. The number of outbound M&A transactions (where Austrian investors sought to acquire foreign targets or their shares) decreased to 90 (36.7%) in 2024 from 93 (41%) in 2023. The num - ber of inbound M&A transactions (where foreign investors sought to acquire Austrian targets or their shares) increased from 89 (39.2%) in 2023 to 107 (43.7%) in 2024.
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