Romanian M&A Market In 2021: Companies That Will Manage a Clean Exit Are The Winners Of The Next Decade
Interview with partner Anca Danilescu on trends and developments in the local M&A market and current projects.
As all over the world, the coronavirus pandemic, jointly with its cohort of effects (lockdowns, change of consumers’ behavior, overreaction etc.) put on hold development business plans in the region. In Romania, this came as an addition to an already sensitive economic environment, where political and fiscal incertitude as well as administration dysfunctionalities were not encouraging for local or foreign investments.
The main factors on which a positive outcome depends are a quick solving of the political deadlock, smart labor policies, taxation system predictability and profound administration restructurings.
The local M&A market will not experience a strong revival of transactions but will face the same restructuring projects in times of crisis. The next period will be marked by intra-group restructurings and takeovers of local businesses. The negotiation and closing of a deal will depend, apart from the commercial terms, on the “courage” to take over the risks of the target-company.