Croatia faces wave of family business sales and rising capital market interest

Croatia is facing a significant wave of ownership changes in medium and family-owned companies over the next five to ten years. As the generation of entrepreneurs who built these businesses over the last three decades approaches retirement, there is increasing interest from both domestic and foreign investors in acquisitions.

Experts note that the M&A market has become more professional, transparent, and sophisticated compared to three decades ago. Investors are increasingly focusing on business sustainability, management quality, and growth potential. Successful transitions often require owners to begin preparations several years in advance to bridge the gap between expected and offered prices.

Simultaneously, the Croatian capital market is seeing increased engagement. Pension funds currently manage approximately 30 billion euros in citizen assets, having generated over 11 billion euros in returns. With the Zagreb Stock Exchange indices growing by more than 20 percent annually over the last three years, more citizens are participating in public offerings and government bonds as an alternative to low-interest bank savings.