“Companies that asked for EBITDA [Earnings before interest, taxes, depreciation, and amortization] six-eight times, are now only asking for the value four times before accepting a takeover. They do not want to sell now, but I think the worst is still to come, and they will start considering selling in 2009. Obviously, those who are interested in selling,” Grigorescu told Business Standard. He added that the present situation provides opportunities for investors who have liquidities, and can now make acquisitions at low prices.
Grigorescu explained that there are investors in the world who have not yet been affected, such as open funds, which will continue to invest. “They have money and are looking for opportunities. They are conservative; they do not buy just anything. But now, they can make demands: if one year or six months ago they depended on sellers, now they are enjoying their position, and waiting to see how low the market can drop,” he said.
The value of the Romanian business law market is expected to amount to €150-200 million in 2008. Major players in the field include Nestor Nestor Dinculescu Kingston Petersen (NNDKP), Tuca Zbarcea&Asociatii, Bostina&Asociatii, Musat&Asociatii, Popovici Nitu&Asociatii. International companies such as Clifford Chance, Allen&Overy, Salans, and Cameron McKenna are also present locally.
