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Branchout Türkiye releases its Türkiye M&A Outlook 2023 Report

Evidence of a contracting global economy was also manifested in merger and acquisition (M&A) activities within Türkiye. A report issued by Branchout indicates that M&A transactions in the country fell to their lowest level in the past decade, with a total value of 3.1 trillion dollars.

Branchout Türkiye, a leading global management consultancy focusing on strategic planning, corporate finance and M&A as well as marketing and brand development, has announced the publication of its latest industry report: Türkiye Mergers and Acquisitions Outlook 2023. This report provides detailed insights into the Turkish market, highlighting its potential as a key destination for foreign investment amid the global economic slowdown.

In a year where the global economy saw contraction, affecting M&A deals to reach a decade low with a total volume of $3.1 trillion, Türkiye has stood out by completing 520 deals, leading to a reported M&A volume of $3.3 billion in 2023. With additional undisclosed transactions, the total volume is estimated by Branchout Türkiye to have risen to US$ 7.9 billion last year. While the number of transactions was similar to the previous year, strategic investor transactions were recorded as 248 and financial investor transactions were recorded as 272.

Türkiye’s valuations make it a very attractive destination

“Given the current market valuations, Türkiye presents a very interesting opportunity,” said Kürşat Doğan, corporate finance and head of strategy at Branchout. “Despite the global slowdown, Türkiye has maintained its attractiveness for investment, especially in sectors like technology, media, and telecommunications.”

The Branchout report thoroughly examines the Türkiye M&A environment, diving into key transactions such as TOFAŞ's acquisition of Stellantis Otomotiv, and Mubadala Investment's recent stake in Turkish unicorn Getir. The report achieves a balanced engagement between domestic and international investors, portraying Türkiye’s diverse investment landscape.

Looking ahead, the report anticipates an improvement in financing conditions despite existing challenges. "We expect financing access to become easier, against a backdrop in which economic and political uncertainties are likely to persist in 2024,” suggested Doğan.

Branchout is optimistic for the 2024 investing landscape in Türkiye

Reflecting on the market dynamics and prospects, Kürşat Doğan added, “Despite global headwinds, the increasing interest in Türkiye and the strengthening of the startup ecosystem are encouraging signs. Events like the February 6 earthquakes and the general elections have influenced transaction volumes, yet Türkiye remains an appealing destination for foreign investors, offering substantial opportunities, especially in developing a strong venture ecosystem and fostering business cooperation."

He also shared the important transactions: “This year, Kuwaiti-based Al Rawabi United Holding Company purchased 52 per cent of Burgan Bank’s shares for 187.5 million dollars. Esas Holding from Türkiye and Qatar Investment Authority made a financial investment of 105 million dollars in Insedir. While Dubai Islamic Bank purchased 20% shares of Tom Group of Companies operating in the financial services sector, UAE-based companies were dominant in the transactions in the region. Among these, logistics company DP Word purchased 58% of the shares of logistics service provider Evyaport, Milavous Group purchased all of Green Energy Chemicals shares, and real estate company Propert Finder purchased some of Hepsi Emlak shares. UAE-based Mubadala Investment was among the investors in the purchase of some shares of on-demand delivery services company Getir for 500 million dollars."

TMT has the leading position

The Branchout Türkiye team, with its extensive knowledge in corporate finance, strategy, and management consultancy, stands ready to assist financial and strategic investors in navigating the complexities of the Turkish market. With a focus on collaborative growth and strategic planning, Branchout provides essential insights and recommendations for operating in the evolving market.

Türkiye M&A Outlook 2023 also details sector-specific activities, noting the technology, media, and telecommunications sector's leading position with 264 deals. This sector-specific analysis is critical for understanding market shifts and pinpointing new opportunities within the Turkish market.