Bet on waste management
The reasons why Romania still brings opportunities to investors are, as Jitta notes, the small barriers for tapping the market, co-financing investments from European funds, cheaper workforce and strategic geographic positioning.
The M&A market opportunities will emerge this year in agriculture, food industry, alternative energy, health, pharmaceutical sector, logistics and transport, real estate. “In certain sectors, there are inefficiency-related problems that can be solved through know-how exchange thus, we see opportunities for strategic investors”, Jitta added.
Currently, Sequoia is running six selling orders in sectors such as food, agriculture, transport, IT and is negotiating for two purchase mandates.
The local private equity funds will, Sequoia head says, either give the go-ahead for a smaller internal rate of return, due to a lower leverage, as the adjusted risk will shrink, or they will choose opportunist investment solutions or solutions involving developing companies, and in this case, the IRR will spring out from the market opportunities.
Waste management is, Sequoia says, a field with huge potential for local M&A market, as long as Romania meets the quotes set forth by the European Union on recycling. “If in Romania the share of municipal waste is 2%, in EU is 50-60%, and the waste recovery from production stands at 30% in Romania, as opposed to 70-80% in EU. “For the M&A market, we see start-up opportunities in production waste management, as well as acquisitions of active companies in collection and recycling of municipal waste”, said Jitta.
The M&A market opportunities will emerge this year in agriculture, food industry, alternative energy, health, pharmaceutical sector, logistics and transport, real estate. “In certain sectors, there are inefficiency-related problems that can be solved through know-how exchange thus, we see opportunities for strategic investors”, Jitta added.
Currently, Sequoia is running six selling orders in sectors such as food, agriculture, transport, IT and is negotiating for two purchase mandates.
The local private equity funds will, Sequoia head says, either give the go-ahead for a smaller internal rate of return, due to a lower leverage, as the adjusted risk will shrink, or they will choose opportunist investment solutions or solutions involving developing companies, and in this case, the IRR will spring out from the market opportunities.
Waste management is, Sequoia says, a field with huge potential for local M&A market, as long as Romania meets the quotes set forth by the European Union on recycling. “If in Romania the share of municipal waste is 2%, in EU is 50-60%, and the waste recovery from production stands at 30% in Romania, as opposed to 70-80% in EU. “For the M&A market, we see start-up opportunities in production waste management, as well as acquisitions of active companies in collection and recycling of municipal waste”, said Jitta.