Belgium’s economy is considered as one of the strongest in European Union with relatively low-interest rates, making it one among priority countries when it comes to deal making. Belgium has operated over €15.5 billion in 2017.¹ The demand for private acquisitions is high, especially among foreign investors. The tax benefits offered by Belgium’s government fuel the interest to do business there and positively affect the M&A environment.

Despite seeing a slight decrease in the appetite of larger corporations with decreased P/E ratios in 2017, small and mid-sized firms present a significant increase. Amidst a strong global economic outlook, M&A appetite is expected to remain robust in the near future.²

Among the numerous benefits of its economic diversity and stability, Belgium acquires a strategically enticing geographical positioning with easy access to central European countries and a highly developed transport network. Belgian economy is strong and stable, to say the least, with solid economic fundamentals supporting modest year to year growth between 1-2% until 2020.³ A tightening labor market and healthy wage growth are expected to underpin a rise in household spending. Cheap financing and tighter industrial capacity are likely to sustain fixed investment. The openness of Belgian economy makes it extremely attractive for foreign investors, however, growth in the near future may be hindered by the political instability in the Eurozone and any escalations in trade conflicts that may arise in the foreseeable future.

Sources: 1 Steven De Schrijver, Astrea (2018). Private acquisitions in Belgium: market analysis overview 2. KPMG. (2017). M&A appetite expected to remain robust  3.(2019) Belgium Economy – GDP, Inflation, CPI and Interest Rate.