Despite a potential recession and high-interest rates, the overall outlook for the Polish market remains optimistic, with robust M&A activity in sectors such as IT, infrastructure, renewable energy, and gaming, according to Clifford Chance Office Managing Partner Agnieszka Janicka.
"M&A activity is a frequent subject of discussion among lawyers in Poland. There is a concern over the question of whether it will maintain its current level or experience a slowdown," Janicka begins. "There are multiple aspects to consider: the potential impact of a recession, worries over how higher interest rates may affect financing for these transactions, as well as the ongoing conflict in Ukraine."
Despite those concerns, it would seem the overall outlook in Poland is positive. "Compared to some other European markets, we have a fairly optimistic outlook on the Polish market," Janicka continues. "Despite experiencing a decrease in private equity activity this year, Poland has demonstrated some resilience," she highlights. "Overall, M&A activity remains robust, and financing options for transactions remain accessible. The market is busy and highly transactional, with M&A activity maintaining its strength in comparison to other markets," she sums up.
And Janicka highlights that certain sectors show exceptional resilience. "The IT sector and companies, in general, which rely more on technology and intellectual property than physical assets, are among the most active sectors," she notes. "Additionally, infrastructure, including the plans for the development of a large central airport in Poland, and energy, particularly nuclear and renewable, are areas of significant activity. And other sectors such as gaming are also currently popular."
Considering those sectors that are doing less well, Janicka believes the country is still well positioned, with its banking sector being relatively secure and restructurings still a way off. "While some sectors are not performing satisfactorily, we have yet to see any signs of significant restructuring," Janicka says. "Despite the banking sector experiencing a lot of turbulence, it does not necessarily mean that our banking sector is at risk. Although no one can be certain after the Credit Suisse case, overall, our banking sector remains relatively secure," she notes.
"We are fairly optimistic about the development of the market, and there is a general expectation that the transactional activity will increase towards the end of this year," Janicka concludes.