What a Foreign Investor Checks When Buying in Türkiye
For a foreign investor, buying a company in Türkiye raises more questions than a domestic deal of the same size — and most of them concern not the company itself but the framework around the transaction.
How FX risk affects valuation
If the target's revenue is in Turkish lira and the investor's reporting currency differs, the valuation is stress-tested both against historical FX volatility and future currency scenarios.
A foreign investor usually tests price not only through a multiple but also against the expected return in its own currency; the two lenses can produce different answers.
The regulatory approval process
Depending on the size and sector of the deal, Competition Authority clearance, sector-specific regulatory approvals (banking, insurance, energy) and, in some sectors, foreign capital permissions may be required.
The timetable of these approvals directly sets the closing date; the most common surprise for a foreign investor is that the approval process takes longer than expected.
The gap in governance and reporting
Many mid-sized companies in Türkiye are family-owned with limited experience in internationally consolidated reporting. A foreign investor usually budgets a transition period to close this gap.
How concentrated decision-making is also gets examined; a structure dependent on a single decision-maker raises post-acquisition transition risk.
Management transition and key people
If much of the company's value rests on the knowledge and relationships of a few people, a foreign investor typically makes it a condition that those people stay for a defined period.
This is usually structured as a transition services agreement, or as the former owner retaining a portion of equity and staying on in management — rollover equity.
Tax and capital repatriation
The transfer of dividends or capital gains abroad is planned in advance within the framework of double-tax treaties and current exchange regulations.
Which jurisdiction the holding structure is set up in shapes both tax efficiency and how straightforward a future exit will be.
International AdvisoryIn cross-border corporate finance advisory and international M&A, wherever capital or a company crosses a border, we build the structure with the realities of each jurisdiction in view.
Learn moreFrequently asked questions
How long does Competition Authority clearance take?
A few weeks for straightforward filings, up to a few months for filings that enter a second-phase review; the timeline depends on the deal's effect on market share.
Does a foreign investor need a special capital entry permit?
Most sectors have no general permit requirement, but regulated areas such as banking, insurance, media and defence require separate approvals.
Is it mandatory for the former owner to stay on after the sale?
It is not mandatory, but when the company's value depends on personal relationships, investors typically request it as a condition of the deal.
NART Insights
Tech Exit: Strategic Buyer or Private Equity
In a tech company sale, the choice between a strategic buyer and a private equity fund shapes the deal structure more than the price.
Learn moreManaging Key Person Risk in Software Companies
If a software company's value rests on a few engineers, how is that risk priced and mitigated in a sale or investment process?
Learn moreHow IP Affects Valuation in a Tech Company Sale
Why does a buyer in a tech company sale scrutinise who owns the intellectual property and how well it is protected?
Learn moreStart a mandate discussion
Tell us about your capital requirement, your transaction idea or your structuring problem. The first assessment meeting is free of charge and strictly confidential.