M&A due diligence Romania13/01/2019
Is your business partner compliant ?30/01/2020
So you have expanded your business and established a local branch in Romania; this was a good move, you get fresh markets and such, your business is benefiting from all the good things this action brings. Congrats!
However, you notice that your branch starts to limp, whereas in the recent past, the entity was doing all right. And you think “right, erm, this is Romania, things are different, it takes time to adjust to the local flavor of doing things”. This is the sort of thinking most of businesses in this situation would do.
Is this really so? A great many times, we have been instructed by clients to have a deeper look into the “limping” of Western businesses with branches opened in Romania. And also a great many times, these branches were found to be marred by that “local flavor”, getting bad results because of the endemic corruption existent. Due to the (mostly) unchecked bad business practices, all it takes is a bad apple in your organization’s basket and all goes south in a very short period of time. By the time the company-mother fully realizes the damage, it is usually too late and the measures needed to cure this corruption pest are hurting the business even more, often to the point of closing the branch altogether. So much for your dreams of expansion.
Get in touch with us; we have been doing this since 1991, and we know how to help you in such cases.