Horvath: Niche advisory – a new trend

“Other international companies will also begin appearing on the Romanian market this year, although the difference will be their specialization. In Romania there is a need for management advisory companies, specializing in banking, insurance, utilities or telecommunications,” according to a declaration for Business Standard by Kurt Weber, Managing Director of Horvath&Partners. Weber added that until now the entry of several international advisory companies was conditioned by “post merger” advisory services, which brought these simultaneously with major foreign investors: OMV-Petrom, Enel-Electrica Muntenia Sud, Dobrogea, Banat, CEZ-Electrica Oltenia, E.On Distrigaz Nord and Electrica Moldova, and Erste-BCR.

“The interesting question in this case is whether the advisory companies will succeed in establishing a stable and sustainable business model in Romania,” added Weber. The Managing Director went on to say that the local market is still sensitive to numerous “risks-obstacles,” including the reticence of Romanian companies for support from advisory companies, a lack of qualified personnel, and a market in which division or sorting of activities is not visible.

“One of the problems which the local market faces is fear of Romanian employees, including managers, for their jobs, namely being replaced by a consultant, and this primarily because they do not recognize their value, do not know how to view their relationship with a consultant or how to behave as they collaborate within a project,” said Weber.

Horvath&Partners has been present on the local market with permanent headquarters since 2006, although it has carried out activities in Romania through partnerships since 2004. It posted turnover worth €6 million in 2007, and is expecting a slight advance of 5 percent this year. Its competitors in Romania include Roland Berger, McKinsey and A.T. Kearney.