While the interest in Turkish companies is increasing, their valuations are also increasing. The multipliers of the companies, which have decreased from 14 to 6 in recent years, have entered the double digit path again.
While Turkey has become the second-fastest growing country in the OECD with the increase in production and exports after the pandemic, foreign interest in companies has also multiplied. Increasing foreign interest also pushes up the valuation of Turkish companies. Ilhami Koc, Corporate Finance Partner of EY, which has one of the most widespread networks in the world on this subject, said, “The multipliers, which are over 12 in Turkey and show how many times a company’s equity is valued, decreased to 6-7 after the coup attempt. Now, we see that the interest has increased again and the multipliers of the companies have increased to 8-9.” “There is a serious increase in interest, especially on the part of foreign investors in Turkey,” said Koc, and continued: “There was interest even during the heaviest period of the pandemic. There is interest in all sectors engaged in production and export in Turkey. You can put food or chemistry in it. There is also a very serious increase in technology and software companies. There were 200 transactions last year, half of which started to form sub-branches such as e-commerce, gaming, cloud technologies and cyber security.”
TURKEY BECOME A PRODUCTION BASE
Stating that there is an increasing trend for new enterprises to obtain financing from abroad, Koc said, “There are small and large firms among the enterprises that provide financing from abroad. Companies with export potential come to the fore. Problems in the field of logistics also highlight Turkey. In the supply chain, Turkey has become a production base for Europe.”
INVESTMENT APPEAL WILL NOT REDUCE
Indicating that they are currently working on more than 10 mergers and acquisitions, Ilhami Koc said that among these companies, there is a great deal of interest from the Far East and the Gulf Region. Stating that they do not foresee a new closure in the coming period, Koc stated that they do not foresee a decrease in investment appetite for this reason. Ilhami Koc also stated that the Istanbul Finance Center project should be accelerated.
Source: Sabah / Translated by Irem Yildiz