SMEs lack the absence of transparency
The SME sector is closely monitored in the M&A market, and many of the deals are gauged. Direct investors expect to conclude deals by summer, in case no big opportunity emerges, and the size of the deals in M&A market will be at least at the level of 2008, with an increased likelihood of actually growing by 25%, Sequoia representatives said.
Therefore, SMEs accounted for 16% of total M&A deals in Romania, market valuated at 6 bln euros, according to Riff International.
More than half of the deals started last year have been put off for this year, with the utmost deals being expected to return at the negotiation table, to be reexamined and some of them to be canceled.
“SMEs lack the absence of transparency, there are few corresponding elements, and the emotional and human factor has a major impact on the conclusion of a deal. Most of the times, the company valuation is related at a higher degree to the accounting or real estate value than the valuation of the company potential”, said Igor Jitta, founder and executive director of Sequoia advisory firm.
Therefore, SMEs accounted for 16% of total M&A deals in Romania, market valuated at 6 bln euros, according to Riff International.
More than half of the deals started last year have been put off for this year, with the utmost deals being expected to return at the negotiation table, to be reexamined and some of them to be canceled.
“SMEs lack the absence of transparency, there are few corresponding elements, and the emotional and human factor has a major impact on the conclusion of a deal. Most of the times, the company valuation is related at a higher degree to the accounting or real estate value than the valuation of the company potential”, said Igor Jitta, founder and executive director of Sequoia advisory firm.