What makes investing in CEE exceptional?

An investment in knowledge pays the best interest, said Benjamin Franklin. Before investing or taking an interest in a certain investment it is advantageous to take into consideration a few factors because some features can contribute to the investment being more or less profitable. One of the key aspects in choosing the right investment type according to personal preferences includes carefully picking up the company which manages costs wisely, allowing the investor to aim for a higher profit in the future, in comparison with some other companies. When considering many facts that affect the costs of operation, especially distinguished are the taxation and location, as the ground of transport and delivery costs, which is important even for the online-working oriented offices. What is currently the best space for making an investment?

The CEE region comprises European countries from Albania at the southeast of Europe to the Baltic Sea at the northwest with Russia as the north boundary, Germany as the west and the Adriatic Sea with Italy as the south border. In 2020 the CEE, along with Russia, showed its power on the market by having a rise of the total value of deals with disclosed value by 11%, despite the number of M&A deals dropping by 16% (Mazars). Moreover, private equity remained exceptionally active in both buyout and exit value, as Lukáš Hruboň described it (Mazars): “Covid-19 is actually creating more opportunities for private equity and financial investors because they generally have sufficient liquidity and HR resources to carry out acquisitions.” In the successful rating, compared to other CEE countries and a few other European states, precede Russia, with total closed deal value in 2020 worth €8bn and is followed by Poland, with total closed deal value the same year worth €7.4bn (Mazers). What makes those countries achieve so well results?

Chief economist for CEE at UniCredit Dan Bucsa said: “Poland and Romania have some of the most diversified fiscal packages worldwide.” Those states are profiting along with other European countries from the fact that Europe has multiform industry and acts in the spectre of numerous sectors such as Automotive industry, Mechanical engineering, Defense industries, Space, Cosmetics and especially relevant at these times, Biotechnology and Chemicals. Furthermore, it is important to point out that the keyword for success in many CEE countries is technology. Avast (Czech Republic), TransferWise (Estonia), Skype (Estonia), Prezi (Hungary) or AeroMobil (Slovakia) – these are a few of many accomplishments that CEE countries achieved and are examples of its strength on the market.

Next to the above-mentioned advantages, it is not surprising that the CEE became one of the most popular spaces for investors to find their opportunities and triumph. As mentioned before, the mega-market that Europe offers will make the business strive for success fast and much more easily than in comparison with other locations. Having well of and affluent countries around, with great traffic connections, the possibilities for targeting desired clients and becoming an enviable competitor on the market are limitless. Being able to hire a well-educated workforce, varying from young and creative people to experienced professionals, for an affordable price, makes the CEE region produce dazzling results with minimum costs of operations. Furthermore, sizably access to funding along with different programs that governments support, as accelerator programs, incubators, co-working spaces, and angel investor funds to support innovation, greatly helps start-ups to flourish.

One of the CEE countries that offers a notable start in Croatia, “one of the great tech success stories of the Adriatic region” (Mazars), whose Infobip in 2020 was the target of the third biggest inbound transaction in the sector of Technology in CEE, and which US’s One Equity Partners acquired for €200m (Mazars). There are many benefits of the Croatian market that will make a start-up become a prosperous business. As an EU member and the CEE state it has all benefits of it, and in some aspects handing even better possibilities: good connectivity with neighbours and other European countries, and non-European states, affordable but first-class workforce, low-prices costs of operation with high-standard solutions and enjoying the process of work with beautiful landscape, delicious food and many other. “Happy employees ensure happy customers. And happy customers ensure happy shareholders – in that order”, said Simon Sinek. With Croatia, you can be assured that satisfaction for all is guaranteed. Would you like to grab a great CEE chance? We are here for you!

Located in Croatia we are striving for the best solutions for our clients while making the best use of available resources. And now we are looking for an individual that looks for something different, with a unique approach and innovative ideas, to keep our growth with advantages for both. It is time to be exceptional!

Visit sgs-daas.com/investment-one-pager to find out more or contact us at www.sgs-daas.com.