16 Aprilie 2010
Stancescu, Riff: Deal activity to remain below the frantic pre-crisis pace for another 30 years
The number of deals in Romania is likely to remain well below the hectic pace before the onset of the financial crisis for another 30-50 years, since the ‘era’ of large privatizations has come to an end.
“Our forecasts for the local M&A market suggest a decline in deal number average to below €5 million over the next 2-3 years”, said Marius Stancescu (photo), chairman of Riff Holding International.
He added that one year and a half, or two years from now, after the local M&A market will have emerged from this crisis, the deal activity will start to pick up.
“I expect the deal size to fall below 2009 levels. And this is a good thing, because companies with revenues below €1 million will be on the sell side, which wouldn’t see before the onset of the financial crisis”, Stancescu pointed out.
The local M&A market rose 75% in the first quarter this year, from the same period of 2009, to €178 million, according to a Capital Partners study.
25 deals were announced in the first quarter, 79% more than 14 a year earlier.
He added that one year and a half, or two years from now, after the local M&A market will have emerged from this crisis, the deal activity will start to pick up.
“I expect the deal size to fall below 2009 levels. And this is a good thing, because companies with revenues below €1 million will be on the sell side, which wouldn’t see before the onset of the financial crisis”, Stancescu pointed out.
The local M&A market rose 75% in the first quarter this year, from the same period of 2009, to €178 million, according to a Capital Partners study.
25 deals were announced in the first quarter, 79% more than 14 a year earlier.