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Turkish M&A: Opportunities Exist, But Require Realism and Discipline
By Tuba Sahanoglu, Deputy General Manager, Akfen Holdings
As of mid-2025, Turkey sits at an important inflection point—macroeconomically and in terms of its M&A environment. The country has re-entered the radar of global investors, but not because risks have disappeared. Rather, it's the gradual rebalancing of macro policy—following a period of persistent unorthodoxy—that is now generating closer scrutiny.
The shift toward more orthodox monetary policy has helped anchor inflation expectations and bring a measure of predictability to a market where fundamentals were often overshadowed by volatility. Interest rates remain high, real sector activity is under pressure, and FX stability is still fragile—but the broader trend is one of “cautious normalization”.
In this context, M&A activity has taken on a different shape. Opportunistic, dollar-backed buyers are finding motivated sellers among Turkish corporates with overstretched balance sheets. Many mid-sized companies, particularly in export-oriented manufacturing and logistics, are capital-constrained—not fundamentally broken, but unable to grow or refinance. This is creating clear entry points. Additionaly selected assets with relatively high entry barriers would always attract global investors given Turkey’s demgoraphic and economic growth dynamics.
However, it's important not to confuse availability of targets with ease of execution. Turkish dealmaking is relational, opaque in places, and often driven more by informal dynamics than formal process. What looks like a well-priced transaction on paper can become complicated when issues of governance, family dynamics, or regulatory interpretation emerge mid-way through a deal.
One recurring theme I’ve observed is that foreign investors overestimate speed and underestimate complexity. Success in Turkish M&A depends less on headline valuation and more on careful structuring, clear alignment with counterparties, and trusted local execution.
Another point worth highlighting is the limited supply of control deals. Most family-owned businesses are open to partial divestments or strategic capital, but few are ready to give up operational control. This means board seats, governance rights, and clearly defined exit paths become essential—and these are often more challenging to negotiate than price itself.
Still, it would be a mistake to view the market solely through the lens of caution. For investors with a long-term horizon, Turkey remains strategically well-positioned—geographically, industrially, and demographically. The key is not to overreact to macro noise or chase short-term price dislocations, but to identify businesses with sustainable competitive advantages and alignment with long-term regional themes.
In summary, Turkish M&A is entering a more stable phase—but it will reward realism over optimism, discipline over speed, and partnership over opportunism.
Tuba Sahanoglu received her Bachelor of Arts degree in Banking & Finance from Bilkent University and holds and MA degree in European Business from EHSAL European University College, Belgium. Ms. Sahanoglu started her professional career as a financial analyst at Alternatifbank in 1996 and accomplished an expertise in treasury banking at TAIB Investment Bank and Turkish Eximbank between 1998-2006 serving as senior dealer at different desks. She joined Akfen Holding in 2007. Since then, she has been involved in numerous corporate actions in both equity and debt capital markets and acquisition financings and led due diligence processes across different sectors and verticals. She also covers venture capital investments in emerging technologies of the group. She is currently serving as Deputy General Manager responsible for in-house M&A and Business Development at Akfen Holding.
