Chambers & Partners: Technology M&A 2025 Guide
Chambers and Partners’s “Technology M&A 2025” guide examines important trends and legal frameworks across various jurisdictions, emphasizing the swift adoption of AI, increasing demands for digital infrastructure, venture capital financing, and regulatory issues. It showcases the growing significance of AI as a valuable asset, the notable rise in investment, and the changing landscape of mergers and acquisitions in the technology sector.
The Bulgaria chapter of the “Technology M&A 2025” guide, written by Nikolay Zisov, Svetlina Kortenska, Deyan Terziev, and Teodora Peycheva from BOYANOV & Co, presents a thorough analysis of the technology mergers and acquisitions market in the country. It highlights a considerable increase in M&A activities within the tech sector, with information and communication technology transactions making up 50% of all announced deals. This trend demonstrates Bulgaria’s attractiveness to foreign investors, particularly from the US and Western Europe, who are lured by the nation’s conducive business environment and growth potential.
The chapter also discusses the emergence of Bulgarian tech start-ups, which have garnered significant interest from both domestic and international investors, including venture capital firms. It addresses the process of establishing new companies, indicating that limited liability companies (OOD) are favored due to their ease of formation and affordability. Furthermore, the introduction of the Bulgarian Variable Capital Company (VCC) in 2023 is noted as a step towards providing start-ups with more flexibility, with the registration framework expected to be functional by 2025.
The chapter indicates that early-stage funding in Bulgaria generally comes from business angels, venture capital firms, and government-supported initiatives. Although the venture capital ecosystem is growing, it remains relatively modest compared to more established markets, presenting difficulties for start-ups in securing significant venture capital. The chapter offers a detailed overview of the current situation and future possibilities for technology mergers and acquisitions in Bulgaria.