Across Central and Eastern Europe, hundreds of companies have already achieved what many startups strive for — clear product-market fit, operational stability, and profitability. These are not speculative ventures. They are companies that weathered economic cycles, adjusted to regulatory shifts, and built strong positions in their local industries.
But now, many of them are reaching a turning point — not in their markets, but in their leadership structures.
According to PwC’s 2023 CEE Private Business Survey, over 30% of SME owners in the region plan to exit their businesses within the next 5–7 years. Alarmingly, more than 60% have no formal succession plan in place.
This convergence of maturity and uncertainty is creating both a risk and an opportunity.
The risk is stagnation — or worse, value erosion through poorly managed transitions.
The opportunity is strategic reinvention through well-executed MBI (Management Buy-In) and MBO (Management Buy-Out) transactions.
Why MBI/MBO Is More Than a Transaction
MBI/MBO events are often treated as financial restructurings — a way to "hand over" control. But in the context of CEE, they are much more than that. They represent an inflection point where ambition, capital, and operational discipline can align to create lasting transformation.
At Mercaton Investment Group, we treat MBI/MBO as strategic entry points — moments when fresh leadership meets proven business models and untapped market potential.
Through our Growth Equity Fund, we partner with internal successors and external managers who are ready to:
Lead the next phase of business evolution
Restructure ownership and governance frameworks
Expand beyond domestic markets and into international territory
We focus on companies that are often too large for early-stage venture capital but not mature enough for traditional private equity models. These companies don’t need to be “turned around” — they need to be scaled strategically and governed effectively.
MBI/MBO as a Platform for Transformation
A well-structured MBI/MBO opens the door to far more than continuity. It can become a platform for:
Business model innovation – adapting to changing demand, digitisation, or regulatory shifts
Balance sheet optimisation – aligning capital structure with strategic goals
Exit readiness – building toward a structured and profitable future transaction
Market repositioning – moving from legacy markets to higher-margin or export-driven segments
In short, these are transactions that go beyond finance — they unlock long-term value creation.
The CEE Opportunity
Central and Eastern Europe is rich in companies that have outgrown their founding models but haven’t yet found the capital or leadership required for the next stage. Many of them were created in the 1990s and 2000s — led by first-generation entrepreneurs now looking to step back.
What the region needs now is not just capital — but strategic capital.
Capital that understands the complexity of succession.
Capital that works hand-in-hand with new leadership.
Capital that turns proven local strength into global relevance.
That’s where Mercaton Investment Group comes in.
At Mercaton, we don’t invest in transitions. We invest in what they can become.
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