After the local mergers & acquisitions market has edged up last year to EUR 1.2 billion, we might a slight increase in the number and value of deals this year, stemming from consolidations and takeovers of small and medium-sized companies, said Ruxandra Ogrendil, managing partner of Pathfinder Management & Consulting, a consultancy on M&A and financing.

Ogrendil stated that Romania has turned into a buyers’ market since the start of the financial crisis in 2009 and investors are still selective these days.

“There is money in the market, but money will only go to the champions,” she told BR. She said that local entrepreneurs willing to attract investors should understand which are the elements investors would pay for, be well aware of what they are selling and be able to show the companies’ real strength.

“We have already seen a number of transactions at the beginning of this year. Private equity funds are again in investing mood and 3 transactions have been already announced. Strategic investors are also active; while some of them have expansion plans, others are planning exits, both with a positive impact on the M&A activity,” said Ogrendil.

“Consolidations should be watched this year, in the financial, telecom and other services fields. As market growth became limited in most sectors, we can expect medium and small players to be taken-over by the large ones, which are looking for different alternatives to organic growth in order to expand their operations and strengthen their market share,” she added.

Some of the sectors well-positioned for M&A this year include the financial, TMT (technology, media, telecom), retail and energy fields.

She commented that Ukraine’s woes will see more financial and private investors reconsidering their plans in the country, and Romania “is well-positioned to benefit from this situation.”