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Less far to fallThe global economic collapse has hit Central and Eastern Europe hard. Investor confidence has decreased and deal flow is stalling. However, opportunities are still out there for the more entrepreneurial firms. By Anastasia Hancock ‘Ask a Serbian how they’re doing, and they’ll tell you: “I’m surviving”.’ This is how one When the downturn first bit in western Europe, the CEE markets were still seen as potentially very lucrative places to do business. Confidence was increasing as asset prices decreased, and regional law firms were cleaning up. However, when the impact of the global economic crisis finally hit the region last spring, a massive drop in deal volumes ensued. The volume and value of M&A deals across the CEE in the financial services sector are at their lowest levels since 2005, according to ‘Financial Services in the CEE Region’, a recent study published by CMS Cameron McKenna in association with mergermarket. But regional players remain stoical in the face of the downturn. Infrastructure and energy mandates, particularly on the PPP side, are keeping lawyers busy, as is state aid work. The CEE didn’t reach the dizzy heights of western Europe when deals were coming thick and fast and banks were lending with abandon. While this might have been a millstone in boom time, it means the region won’t fall as far when recession strikes. Once touted as a risky place to do business, the CEE struggled in the past to throw off the mantle of its difficult history. However, with liquidity high in the West, investors began to see the region as a potentially profitable market. Economic growth was rapid, with appetite boosted by EU expansion, relatively cheap labour, and increased confidence as the markets stabilised. To read the rest of this article subscribe to Legal Business. 
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