Buying a company in Romania: what investors should know

Where the opportunities are

Romania has been one of the faster-growing economies in the European Union over the last two decades. Many of the companies founded in the 1990s and 2000s have become solid mid-market businesses, and their founders now face decisions on succession, growth capital or a partner.

Investors look most often at manufacturing for European supply chains, building materials, food and beverages, healthcare, IT services, logistics and distribution. In each of these sectors the best targets are rarely for sale, which is why a structured search usually finds more than waiting for sale processes.

Expect founder-owned companies

Most mid-market targets are run by the people who built them. Decisions sit with one or two shareholders, governance is often informal, and related-party arrangements such as property rented from the owner are common.

This is not a warning sign in itself. It means the deal needs more preparation on both sides, a direct relationship with the owner and a structure that reflects how the business really works.

Use public data before the first call

Romania publishes more company information than many investors expect. The Trade Register shows shareholders, directors and registered activities. Annual financial statements filed with the tax authority show revenue, profit, employees and the main balance sheet items for most companies.

Together, these sources let you build a long list, rank targets by size and profitability and understand ownership before you approach anyone. Our free target screening is built on the same data.

Valuation and deal structure

Valuations depend on size, growth, the quality of earnings and how many buyers compete. Smaller, owner-dependent companies usually trade at lower multiples than larger peers in Western Europe, and part of the value is created by professionalising the business after closing.

• Prices are usually agreed in euro, even when the accounts are in lei.
• Majority acquisitions often leave the founder with a minority stake for a few years.
• Earn-outs and deferred payments help bridge different views on future performance.

Approvals and timetable

A transaction needs clearance from the Competition Council when the parties' combined worldwide turnover exceeds €10 million and at least two of them each have turnover in Romania above €4 million. Investments in sensitive sectors may also need foreign direct investment screening, and regulated businesses such as financial services, energy or healthcare need the approval of their regulator.

From first approach to closing, a buy-side process usually takes six to twelve months, depending on how quickly the owner engages and on the approvals needed.

Work with a local team

A local adviser helps with origination, with the first conversations in Romanian and with negotiations that depend on trust as much as on numbers. Lawyers and due diligence providers complete the team. We coordinate them, so you deal with one counterpart from the first screen to closing.