Polish Firms Embrace M&A for Global Expansion

Polish businesses are demonstrating a growing ambition to compete on the global stage, with international mergers and acquisitions emerging as a primary strategy for expansion. This trend reflects a maturing Polish economy and a desire among its leading companies to leverage their expertise and capital beyond domestic borders. The discussions at the XVIII European Economic Congress highlighted how firms are successfully navigating foreign markets, driven by the need for scale and access to larger customer bases.

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Our products under the Tytan brand are sold in over 100 countries worldwide.

Companies like Selena Group, a producer of construction chemicals, and cyber_Folks, a technology group specializing in e-commerce, exemplify this outward push. Selena's global reach, with products sold in over 100 countries, and cyber_Folks's ambition to be the largest e-commerce technology provider in Europe, underscore the strategic importance of international M&A. Public institutions, such as Bank Gospodarstwa Krajowego, play a vital role by providing financial backing and support for these cross-border ventures, recognizing them as crucial for Poland's economic growth.

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This makes us the largest supplier of e-commerce technology on our continent.

For businesses in sectors like food processing, the rationale for international expansion is clear: the sheer scale of markets like the UK or Germany dwarfs Poland's domestic market. Colian Group's strategy of starting with exports and then acquiring local entities illustrates a common, effective approach. Similarly, Kruk Group's significant presence across Europe, serving millions of customers and generating substantial EBITDA in countries like Romania, Italy, and Spain, shows that a significant portion of business can be conducted abroad.

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Our task is, among other things, to finance and support the expansion of Polish companies abroad.

However, the path to international success is not without its challenges. Speakers emphasized that a 'one-size-fits-all' approach rarely works. Adapting proven business models to the nuances of each foreign market is critical, as demonstrated by the caution against simply replicating Polish recipes in Spanish restaurants. The initial investment required for such expansion can be high, demanding patience and a long-term perspective before profitability is achieved. Ultimately, successful internationalization hinges on scale, thorough preparation, and astute market entry, often facilitated by M&A as the most effective route.

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The Polish market is about 5 billion euros. The British or German market is five to six times larger.