Arthur Hunt and ONV LAW form new association
Arthur Hunt Romania, one of the first players in the Executive Search & HR Advisory services market and ONV LAW, one of the most dynamic independent law firms form an association and launch a new advisory division on the local market. The M&A volume in Romania is expected to reach more than €5 billion in 2021, with more than 250 transactions already announced, while the business restructurings, transitions or transformations will also continue in the next period, in the pandemic context.
Thus, following the market dynamic, Arthur Hunt and ONV LAW form the first such Joint Venture in Romania and launch a new business line – integrated HR and legal advisory services for companies` restructuring, integration and transformation processes. The new advisory segment is estimated by the two companies at more than €3 billion in 2021, based on companies` public announcements.
“Business is going through a new development phase and we expect to see a new wave of Restructurings and Mergers & Acquisitions in the next period, in full pandemic context. Energy, Real Estate, FMCG, Health, IT and Telecom will be among the most active sectors,” said Radu Nemeș, Managing Partner of ONV LAW. The entrepreneurs will try to ensure business consolidation and economic recovery after 2020 and to develop strategies to anticipate potential unforeseen changes, considering what they`ve been through since the pandemic outbreak, ONV LAW representative adds.
Sorin Roibu, Managing Partner of Arthur Hunt Romania highlights that 80 percent of the business change initiatives of any kind fail, and this is mainly due to the lack of coordination between the company managers, the lack of accountability in companies` leadership or the lack of correct evaluation of the ground realities. “We saw cases in which a transition, transformation or restructuring process generated costs of millions of euros, as well as reputation problems and thus the deterioration of clients` relations,” Arthur Hunt representative said.
Another major trend on the market is the organizational transformations, which started before the pandemic, considering the implementation of the sustainability principles in businesses operations and development, as well as the foreign investments made in Romanian companies.
Since the pandemic outbreak, the companies had to go through forced transformation processes (digital, operational, etc.), all of which are expensive, resource-consuming and reputationally risky, the two companies` representatives state. The cumulated turnover of the two companies exceeded €1 million in 2020 and they estimate a 20 percent business increase in 2021 as a result of the new change management business line launch.