Significant differences exist between terms that typically apply in M&A transactions in Africa and EuropeAcquirers tend to view European markets as being more seller-friendly than African markets. Although the underlying fundamentals of M&A transactions in Africa and Europe are essentially similar, significant differences exist. A longer track record of PE transactions exists in Europe, and PE sellers have taken more aggressive stances to minimize deal conditionality and transaction tail risk. However, exits in the form of a listing or initial public offering are rare in Africa, while public M&A markets are more active in Europe. At the same time, there is less deal certainty with African deals, compared to deals in Europe.

Source: The North Africa Journal November 12, 2021 08:39 UTC