Background: Acquisition target search in Romanian Bulgarian BPO

The Challenge:

The Client is an Italian provider of BPO services with a presence in Romania. The company is looking to further develop its local operations in Romania and Bulgaria. They are researching the Romanian and Bulgarian BPO market in order to decide on the best strategy for development. The Italian BPO group hired FRD Center to provide acquisition target search in Romanian Bulgarian BPO sector.

The Solution:

FRD Center provided in-depth market research and players analysis services which resulted in a comprehensive market report, detailed profiles of the companies active in this market in Romania, examples of salaries, insights from potential local clients, expected trends in the market, estimated evolution of employee pool etc.

The Client was fully satisfied with the outcome and used the analysis in its development strategy.

As a next step, the Client required FRD Center to develop an M&A targets search and selection in Romania and Bulgaria, to approach the shortlisted targets at Owner level and assess interest in being acquired. This resulted in a detailed report and facilitation of direct contact of the Client’s M&A Director with the local interested company Owners.

For the FRD Center M&A advisory services consult http://www.frdcenter.ro/services/ma-advisory/

For a FRD Center DEMO report on the BPO Sector in Romania – Players Activity and M&A Analysis available for free download go to: http://www.frdcenter.ro/assets/BPO-Sector-Romania-FRD-Center-analysis.pdf

More details about Market Expansion opportunities in Romania and Eastern Europe are available in the FRD Center businessblog at https://market-entry-romania.blogspot.com/

Romania is a reckognised hub for BPO and SSCs in Europe, competing with global destinations such as India. Numerous foreign players are setting up their European operations in Romania which presents certain advantages compared to other locations. They are acquiring local independent players or setting up greefield operations.

The M&A option is becoming the preferred option mainly due to avoiding delays in starting the actual operations due to recruitment and setting up. Examples include Telus International acquiring CallPoint New Europe, NTT Data Corporation acquiring EBS Romania, CGS Inc. acquiring EasyCall.

Several local independent BPO and call centers currently operate quite successfully on the Romanian market, reaching turnovers of between 2.5 and 15 MEUR. FRD Center has been monitoring their progress and has direct access at owner-level.

The Romanian market of outsourcing and support services, estimated at over EUR1.5bn, employs over 109,000 people. According to ABSL, the average attrition rate in the business services sector in Romania is 17 – 23%. The jobs created in the business services sector in Romania have recorded a Compound Annual Growth Rate of 33% during 2013 – 2016. More details at https://market-entry-romania.blogspot.com/2017/02/bpo-potential-in-romania-m-and-market.html