Resilient acquisitions: financial and strategic patterns of M&As in Central Europe in a polycrisis context

Purpose More than 20 years after EU accession, the Central European (CE) region has become a fully integrated part of global supply chains and has attracted growing investor interest from Germany, the UK and the USA. Mergers and acquisitions (M&A) played an important role in this process. This research aims to focus on M&As between 2019 and 2023, as the CE region was strongly affected by a polycrisis: COVID-19 and the consequences of the Russian-Ukrainian war. Design/methodology/approach The aim of the study is to examine, using the increasingly recognized chi-squared automatic interaction detection decision tree, whether the CE acquirers changed their expansion strategies during the polycrisis and to assess the profitability of these deals through financial analysis. The authors analyzed 3,032 deals from Poland, the Czech Republic, Hungary, Slovakia, Slovenia, Croatia, Romania and Bulgaria. Findings The study indicates that acquirers, through the cautious adoption of international strategies and financial exposure, have initiated successful transactions via conglomerate and limited cross-border expansion, potentially facilitating the continued advancement of the region’s principal corporate entities. Originality/value The present research focused on M&A transactions in CE, a field which has hitherto received insufficient scholarly attention. The authors analyzed the success of these transactions during the COVID-19-induced economic and natural crisis using a representative sample. The findings may be of interest not only to academics, but also to emerging, innovative small and medium-sized enterprises for whom cross-border deals can serve as a springboard for further growth.