Distressed-asset deals
If Sequoia’s strategy launched in 2007 was focused so far on financing developing companies, drawing strategic investors, as of 2009, the mandates will converge on “buy-side”, as many of the company’s clients shifted from direct investors into distressed-asset deal investors. “We have reorganization projects under management, involving economic agents that face a severe financial lockdown who now seek for financial support in the capital market. For 2009, I expect a growth in this array of projects”, Jitta added.
The vendors, he says, lost their leverage in buyer-seller relation since October last year, after the collapse of Lehman Brothers that sparked panic and mistrust in the financial sector.
The reduction of the risk for investors is the major concern of Sequoia advisory board, company specialized in M&A advisory services for SMEs.
“Most of the investors we are working with are strategists, however, we are running investment funds as well, especially Dutch. We prefer to stimulate associations between strategic investors and investment funds. This formula assures growth, by the reduction of inefficiency and by the know-how exchange. The volume of investors has risen once the valuation of Romanian companies became more realistic”, said Igor Jitta.
The vendors, he says, lost their leverage in buyer-seller relation since October last year, after the collapse of Lehman Brothers that sparked panic and mistrust in the financial sector.
The reduction of the risk for investors is the major concern of Sequoia advisory board, company specialized in M&A advisory services for SMEs.
“Most of the investors we are working with are strategists, however, we are running investment funds as well, especially Dutch. We prefer to stimulate associations between strategic investors and investment funds. This formula assures growth, by the reduction of inefficiency and by the know-how exchange. The volume of investors has risen once the valuation of Romanian companies became more realistic”, said Igor Jitta.