The business investment climate in Serbia has improved noticeably in recent years. Cessation of armed conflicts in the region, a relatively stable macroeconomic policy and changes in the legislative framework aimed at harmonizing laws with contemporary pro-business practices have been among the key drivers of change. However, the expected growth in M&A transactions in 2007/2008 has not been realized, because of the global credit crisis, the Kosovo crisis and the snap elections held in May 2008. Prospects, nevertheless, are still