Greece’s M&A landscape is experiencing a dynamic transformation in 2025, with deal activity rising by 34.2% in Q1 compared to the same period in 2024 (LSEG). This surge reflects a broader trend of economic revitalization and strategic repositioning across sectors, particularly in technology and real estate. But will this momentum continue? At Datasite’s recent Dealmakers Dialogues Athens event, John Komninakidis sat down with Nikolaos Baziotis, Yannis Kourniotis, Dimitris Nektarios, and Dimitris Tsatsanis to find out their thoughts on what lies ahead for dealmaking in Greece.

A Booming Market with Global Interest

Following a robust 2024, which saw 123 transactions totalling €12.5 billion, Greece continues to attract significant investor interest. Notably, capital inflows from the US and Gulf countries are intensifying, drawn by the country’s improving macroeconomic indicators and strategic geographic position. This momentum is further fuelled by the exponential growth in data demand – doubling every two years –which is driving the need for advanced digital infrastructure. Companies that can integrate cutting-edge technologies, including AI and next-gen networks, are becoming prime acquisition targets.

Real Estate: From Recovery to Growth

Once severely impacted by the financial crisis, Greece’s real estate sector is now a focal point for foreign direct investment, especially in residential and hospitality assets. Investors are capitalizing on the sector’s recovery, while local companies are leveraging property sales to restructure balance sheets and unlock internal capital for reinvestment. Although real estate is less sensitive to macroeconomic shocks, local market dynamics remain crucial, underscoring the importance of strategic positioning and quality development. 

Navigating Challenges in Deal Structuring

Despite the positive outlook, structured deals in Greece face notable hurdles. A persistent bid-ask valuation gap remains a major deal breaker, often stalling negotiations. Moreover, the human factor and cultural alignment can be crucial in valuation expectations as well as negotiation strategy. So, deal success can hinge on accurate valuation, cultural alignment, and team chemistry. Private equity funds are increasingly targeting SMEs, offering both capital and strategic guidance. However, geopolitical uncertainties and the evolving US political landscape continue to pose risks.

Additionally, while the number of new deal starts in the region may have increased, diligence timelines have been getting longer: Datasite’s anonymized Q1  platform data reveals that due diligence increased by 21 days from the same time last year for the CEE & SEE region. Whether this is due to cultural issues or the impact of the ever-increasing need for more information is unknown. However, this is where the use of technology can play an important role, as efficiencies can be gained in due diligence through the use of tools such as integrated Q&A, AI-powered redaction, and in-data room document translation.

Adapting to a Fragmented European Market

A recurring theme among M&A experts is the fragmented nature of the European market. Each country operates independently, limiting the continent’s ability to compete globally. For Greece, aligning with broader European integration efforts could enhance competitiveness and attract more cross-border deals. Meanwhile, Greek businesses are adapting to technological shifts through organic growth, partnerships, and acquisitions – strategies essential for long-term resilience.

Strategic Imperatives for Greek Companies

To thrive in this evolving environment, Greek companies must focus on several key areas:

• Strengthening core operations and streamlining business models
• Restructuring balance sheets to improve financial agility
• Identifying internal capital sources for reinvestment
• Leveraging available financing in real estate to scale operations
• Building strategic partnerships and focusing on quality over quantity
• Improving regulatory frameworks to support sustainable growth

Moreover, fostering a culture of trust and collaboration is vital, particularly in valuation expectations and in a market where skepticism can hinder dealmaking. Encouraging SME development and enhancing negotiation strategies will be critical to unlocking the full potential of Greece’s M&A ecosystem.

As 2025 unfolds, Greece stands at a pivotal juncture. With the right mix of strategic foresight, technological integration, and regulatory support, the country is well-positioned to become a regional hub for transformative M&A activity.

Learn how Datasite can help you with your next M&A deal.