"Cyprus broadly followed global trends, in the sense that M&A was selective and strategy-driven, but local conditions played a much bigger role than in larger markets. Given the limited depth of the Cypriot market, regulation and supervisory requirements had a disproportionate impact on deal activity," Panagiotis Georgiou suggests.
In an interview with GOLD magazine also featuring his fellow Partner at Alma Advisors, Nikolas Evangelou, Georgiou (pictured above right) also notes, "In a small market like Cyprus, a handful of transactions of this nature can shape the overall M&A narrative for an entire year, even if activity elsewhere in the mid-market remains uneven."
On his part, Evangelou (pictured above left), among other things, notes, "Banking and financial services were clearly the most active sectors in 2025, driven by ongoing consolidation. Alongside this, ICT and tech-enabled services continued to attract interest, reflecting longer-term structural growth rather than short-term market conditions. Tourism-related assets, as well as shipping and logistics, also remained on investors’ radar, given Cyprus’ regional positioning."
"Looking ahead, ICT – particularly cybersecurity and fintech – looks especially attractive, as these businesses can scale well beyond the domestic market," Evangelou proposes.
2025 was defined by geopolitical conflict, shifting trade policy and market volatility. How did these forces affect deal flow and valuations on the global stage?
Nikolas Evangelou: 2025 was a more selective M&A year. Volumes were clearly down, particularly in the first half, but the deals that did happen tended to be larger and more strategic. Boards were cautious and generally only approved “must-do” transactions, either to secure long-term positioning, access critical technology or lock in infrastructure and defensive assets. This is something we saw across our buy-side and sell-side mandates last year: while buyers scrutinised assumptions closely, genuinely strategic transactions showed greater flexibility and a willingness to bridge valuation gaps. That dynamic led to a wide split in valuations. High-quality assets in areas such as AI, infrastructure and mission-critical software continued to command premium prices. By contrast, more cyclical businesses or those exposed to cross-border trade and geopolitical risk saw tougher negotiations, more conservative assumptions and, in many cases, structured pricing.
Did Cyprus largely track global M&A trends in 2025 or did local conditions, such as regulation and market depth, drive a different outcome?
Panagiotis Georgiou: Cyprus broadly followed global trends, in the sense that M&A was selective and strategy-driven, but local conditions played a much bigger role than in larger markets. Given the limited depth of the Cypriot market, regulation and supervisory requirements had a disproportionate impact on deal activity. In particular, consolidation in banking and financial services dominated the headlines. Regulatory approvals, capital adequacy and alignment with European supervisory standards were often more important drivers than pure commercial considerations. In a small market like Cyprus, a handful of transactions of this nature can shape the overall M&A narrative for an entire year, even if activity elsewhere in the mid-market remains uneven.
Which sectors and/or segments in Cyprus emerged as the most active or attractive for transactions and which, if any, look most promising going forward?
Nikolas Evangelou: Banking and financial services were clearly the most active sectors in 2025, driven by ongoing consolidation. Alongside this, ICT and tech-enabled services continued to attract interest, reflecting longer-term structural growth rather than short-term market conditions. Tourism-related assets, as well as shipping and logistics, also remained on investors’ radar, given Cyprus’ regional positioning. Looking ahead, ICT – particularly cybersecurity and fintech – looks especially attractive, as these businesses can scale well beyond the domestic market. We saw this in practice with a 2024 transaction in which a Greek private equity firm backed Odyssey Cybersecurity, a business that has since successfully expanded its international footprint. Energy transition and infrastructure are also emerging as strong themes, supported by policy alignment and available capital, while financial platforms in wealth management, payments and servicing should continue to attract interest as consolidation creates secondary transaction opportunities.
In today’s environment, when does M&A make strategic sense for Cypriot businesses and what benefits does it offer?
Panagiotis Georgiou: M&A makes sense when there is a clear strategic outcome, not simply growth for growth’s sake. For Cypriot businesses, the most compelling cases tend to be regional expansion, building scalable platforms in services or technology, or consolidation in regulated sectors where scale genuinely matters. When executed well, these transactions can improve earnings stability, strengthen the balance sheet and broaden access to funding. In the current environment, structured deals are often the most effective way to bridge valuation gaps and align risk between buyers and sellers.
Do you expect 2026 to resemble the dynamics of 2025 or is the market entering a different phase? If so, what will be the key drivers of that shift?
Nikolas Evangelou: Our base case is that 2026 builds on the 2025 setup but with broader participation. If rates continue to ease and policy uncertainty stabilises, activity should extend beyond megadeals, with more mid-market sellers re-entering the market. Key swing factors will be the cost and availability of capital, regulatory scrutiny, particularly for larger transactions, and investor discipline around AI-driven themes. While renewed volatility remains a risk if inflation, geopolitical tensions, or capex pressures resurface, we remain bullish, especially for the mid-market in Greece and Cyprus, where investor appetite is strong and business owners are increasingly open to M&A as a means of realising strategic outcomes.
