Turning challenges faced by Romanian mid-sized companies into opportunities
Since 1999 our investment team has worked on over 150 mid-market M&A and corporate finance assignments in Romania and had exploratory discussions with hundreds of founders/MDs of Romanian SMEs. Here are some of the challenges and the lessons learned and how they can be turned into opportunities:
Common Challenges for Romanian Mid-sized Companies
Discounted valuations: a major valuation differential is observed between transactions involving market leading players and small/mid-sized companies.
Investment Opportunity
Add value through extensive exit preparation (corporate governance procedures and solid management teams in place, “Big 4” audited financials, risk identification and mitigation reviews, detailed business plans and financial models).
Build leading players in their market segments or secure strong strategic positions with the potential to generate valuation multiples expansion for the business owners and Fund’s investors
