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How to identify Targets for acquisition in Romania and approach their Owners / Decision Makers? For over 20 years, FRD Center consultants assist the Foreign Buyers with Target Origination and Investment Project Sourcing in Romania and the region.

For more details email us at FRDCenter@market-entry.ro or europa@frdcenter.ro

The FRD Center methodology, tactics and offer of assistance include:

  • research the Romanian market for relevant potential Targets based on the profile and criteria provided by the Client (the Foreign Buyer)
  • provide the Client with a longlist of identified players and their brief profiles
  • shortlist and rank them by relevance (together with / by the Client)
  • initial reputation check on shortlisted players and their shareholders / Decision Makers in Romania (lawsuits, legal issues, other issues) – secondary research
  • approach (owner level / Decision Maker level) shortlisted players to check their willingness to sell / discuss M&A
  • introduce to the Client those that confirm such interest (if any)

Some examples of Target Origination project conducted by FRD Center for the foreign clients looking to expand their operations in Romania and the region include:

Example 1 – Market expansion support in BPO sector in Romania and Bulgaria for foreign company : https://www.frdcenter.ro/portfolio/case-study-three-market-expansion-support-in-bpo-sector/

Based on the specific details received from the Client, FRD Center and the local partners in Bulgaria have identified the most relevant independent local players in the BPO and call center sector, prepared their in-depth profiles, and submitted these to the Client.

The Client selected the most interesting targets and provided the shortlist to FRD Center for the next phase: background checks. Those that turned out to have no issues, were contacted in confidence, at Owner or Decision Maker level without disclosing the identity of the Client and assessed their intention to sell the company.

The M&A Director of the Client-company received the Final Report with the outcomes of the discussions and proceeded to use the information internally.

Separate from this project, FRD Center is currently (2021-2022) providing Target Origination services in the BPO sector to a major group from the Middle East looking to acquire the Romanian operations of an international group of companies in the sector and thus expand to Europe via Romania.

How to identify correctly the relevant Targets for acquisition in Romania and approach their Owners / Decision Makers?

For Expansion opportunities in the BPO Sector in Romania and Emerging Europe as analysed by FRD Center in the Business Blog go to the link: https://market-entry-romania.blogspot.com/2021/09/expansion-opportunities-in-bpo-sector.html

The list of players active on the Romanian BPO sector include companies such as Computer Generated Solutions CGS:  https://www.cgsinc.com/en

Example 2 – Acquisition Target Origination in the Romanian LPG sector: https://www.frdcenter.ro/portfolio/acquisition-target-origination-in-the-romanian-lpg-sector/

FRD Center provided market research and analysis as and target search and in-depth scanning services. This resulted in a comprehensive market report – the LPG Distribution Market in Romania Report – and detailed profiles of the companies active in the LPG market in Romania. Also, the services provided by the FRD Center team were the selection of most suitable candidates, direct approach at Owner level for interest assessment, securing meetings with the target-companies and logistic support during the business itinerary in Romania. FRD Center also provided consultancy during discussions with the candidates for acquisition.

Example 3 – In-depth Market Analysis and Target Origination in the Aggregates Sector in Romania: https://www.frdcenter.ro/portfolio/target-origination-in-aggregates-market-in-romania/

In this project, FRD Center provided consulting services to a Client is a 224.7 million GBP profit (June 2007) building and construction materials company with headquarters in the UK looking to expand its operations in Central Eastern Europe, most likely through the acquisition of a local player in the aggregates sector.

FRD Center provided comprehensive market research services which resulted in a detailed market report, market opportunities assessment, in-depth analysis of local players in the Romanian aggregates market, background and reputation checks, commercial due diligence, detailed players profiles with Ownership, identification and selection of potential target-companies interested to be acquired, market entry strategies assessment.

The FRD Center target origination and deal origination in Romania have been required and, as follow-up, the FRD Center management team was invited by the Client to deliver also a comprehensive sector presentation to the company’s Board in London.

How to identify correctly the relevant Targets for acquisition in Romania and approach their Owners / Decision Makers?

One of the strongest players in the aggregates sector also operating on the Romanian market is Heidelberg Cement group: https://www.heidelbergcement.com/en/aggregates

Example 4 – M&A advisory services and Deal Origination in Renewable Energy in Romania: https://www.frdcenter.ro/portfolio/ma-advisory-in-renewable-energy/

The FRD Center Client was an Irish private equity investment fund focusing on renewable energy, wind farms. The Client was looking to make significant investments in green energy in Romania through the acquisition of a local player / several local players – wind farms – and has commissioned FRD Center to carry out a comprehensive Deal Origination and Target Search process.

Why expand to Romania? Romania is one of the most dynamic economies in Europe and a gateway to both the EU and Eastern European markets.

Here are some recent details about the Romanian economy:

In 2022, the Romanian economy is expected to grow with some 4.8% after a growth of 7% in 2021. According to the Finance Minister, the European Union recovery funds released under the PNRR will help Romania boost its investment spending to 6.7% of the GDP in 2022.

The Romanian Ministry of Finance 2022-2024 budget strategy estimates investment could reach 7.7% of GDP by 2024 and help the EU state’s economy grow 5% per year on average.

According to an analysis by Deloitte Romania, the M&A market in Romania reached an all-time record in 2021 in terms of number of deals, having recorded 137 transactions.

According to official provisional and revised data from National Bank of Romania, the foreign direct investment (FDI) in Romania more than tripled y-t-y in the first 10 months of 2021, from 2.13 bnEUR to 6.88 bnEUR.

Compared to other countries in Europe, Romania offers some of the best conditions and incentives for investors. It has low taxes and high yields. Romanian projects that foster sustainability and green economy development will receive significant support through a variety of state aid schemes for many years to come.

How to identify correctly the relevant Targets for acquisition in Romania and approach their Owners / Decision Makers?

More details at https://market-entry-romania.blogspot.com/2022/02/how-is-romanian-economy-doing-in-2022.html

For tailor-made market research, target origination, M&A advisory services, B2B matchmaking with Decision Makers in Romania and the Emerging Markets in Europe, for targets search and deal origination feel free to contact the FRD Center team at email: europa@frdcenter.ro or tel: +4021 411 1459/60/61

Is your company strategy to expand internationally and enter the EU markets? Are you looking to expand globally? To acquire a local player in Romania or Eastern Europe? Perhaps we could collaborate.

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