Dinos Constantinou: M&As open huge opportunities for Cypriot companies

Dinos Constantinou, Partner at Oaklins, referred to Cyprus’ potential when it comes to mergers and acquisitions (M&A) as well as the opportunities and prospects they can open for Cypriot companies, during an event held by the company in Nicosia.

The event, dedicated to the M&A market, took place on 27 September at Pralina Experience and was attended by experts in the field who exchanged views with other business professionals in Cyprus.

Constantinou said the majority of Cypriot companies are either privately owned or family-run businesses and are characterised by over-indebtedness and weak financial management.

Listing a number of examples of M&As in other countries, Constantinou said it was important that Cypriot companies acknowledge that their competition is effectively their ally.

He said there were reasons behind the lack of M&As in Cyprus up until recently. For a start, foreign investments weren’t even allowed on the island up until it joined the EU. Cyprus’ accession to the EU had been linked to solving the Cyprus problem, and a lot of capital was waiting to be invested in this. However, the lack of a solution brought about a freeze. The haircut on deposits in 2013 raised further obstacles, as no one would dare invest in Cyprus in the aftermath. Then the island’s name was marred further by the golden passports scandal.

But things have changed in Cyprus now, said Constantinou, with it having cleared its name and entered a new era when it comes to M&As and attracting investors.

For the first time in history, Cypriot businesses are starting to realise that it is the multinational companies they are competing with and this has shifted the mentality.

Especially following the war in Ukraine, it was made clear that Cyprus belongs to the West. Also, its EU and Eurozone membership contribute to this improved image, especially when it comes to attracting foreign investors and creating the ideal landscape for M&As.

Cypriot companies are now being run by the second and third generations, said Constantinou, which are aware that selling the company is a good option that could bring multiple benefits; particularly in this multinational environment.

He concluded that global circumstances have turned Cyprus into an attractive destination with huge potential.

Oaklins specialises in mergers and acquisitions, capital development, debt advisory services and corporate financing services, with a network of over 850 professionals at over 60 offices in 45 countries.