M&A opportunities in the Czech Republic

29 Sep. 2011 | CzechInvest | CzechInvest has launched the CzechLink project to facilitate mergers and acquisition in the Czech Republic.

The Czech corporate marketplace offers a great opportunity to expand your footprint in a competitive location with a favourable cost structure and a skilled labour force. After the boom which took place in the manufacturing and IT sectors over the past several years, many Czech owners are considering tying their factory growth to collaboration with a strong foreign partner or selling their equity and retiring. To support current market trends, CzechInvest has launched the CzechLink project to facilitate qualified investor search and enable the pre-audit project stage. The project represents a unique service provided free of charge to both Czech and foreign investors which will speed their mutual contact.

“CzechLink promotes incoming investments into the Czech Republic. So far, we have registered interest in acquisitions and mergers from companies based in Japan, Great Britain, USA, Sweden and Spain and believe there will be further interest on the part of investors,” stated the General Director of CzechInvest - Investment and Business Development Agency.

Information on companies registered with CzechLink is shared with strategic investors as well as with pro private equity funds and client-authorized consultants. Based upon a confidentiality contract CzechInvest provides them, free of charge, with a Company Prospectus featuring international performance indicators for those Czech companies showing an interest in shareholding relations. The Company Prospectus will provide investors with comprehensive information on the company’s economic situation and its position on the market by means of an analysis of the company financial performance and structured profiles describing its technology base, purchase, competitors etc. Company Prospectus does not replace the buyer´s due-diligence conducted by an independent consultant.

CzechInvest can promote further expansion following the merger via grants and investment incentives.

More than twenty small and mid-size Czech enterprises from manufacturing and IT took part in the project. They employ 100 people on average and achieve an annual turnover up to CZK 300 million. These are usually companies from the engineering, metal processing and plastic industries whose production targets clients involved in the automobile industry.

Basic information on the registered companies, however, without any specific identification, is available to foreign investors at http://www.czechinvest.org/en/czechlink.

If you are interested in specific companies registered in CzechLink, contact the Prague Sourcing Department atczechlink@czechinvest.org. Individual meetings can be arranged with CzechInvest foreign representatives at http://www.czechinvest.org/en/foreign-offices .