SWOT Analysis
Strengths
- Post privatization phase
- Hungary is known to have grown talent and know how in selected industries
- Tax laws are changing to attract foreign investors
Weaknesses
- Macro-economic policy is heavily influenced by foreign investors
- Limited number of large potential investments
- Lack of maturity in deal making
Opportunities
- Untapped midsize market
- Growth potential of Hungarian companies already invested in neighboring countries
- Growth opportunities of CEE region
- Market consolidation in various industries
- Difficult to raise financing for local players
- Hidden values due to under-developed management structures
- Government’s support for the EU funded “Jeremie-Program” (Oct 2009) to fuel VC activities and to encourage companies to come to market, presenting viable investment opportunities
Threats
- Reduced availability of debt financing
- Currency volatility
- Recent drop in investor confidence
Outlook
- Strengthening investments of regional VC/PE players leveraging market consolidation and untapped values
Expert: Balazs Tuske, Partner, E&Y Hungary |
Comparison within Peer Group
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Separate VC and PE Indices
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