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Almost all business owners I was talking to in the last months are asking: ‘Which are the new trends ?’ and ‘What has changed within last year ?’As I review the deal landscape for Romanian businesses in 2025 (out of multiple sources and readings, mentioned at the end) I want to share the results with (mainly) Romanian business owners.Here one theme stands out: resilience amid uncertainty.&nbsp;Despite global headwinds, our market kept moving. In Romania, 216 M&amp;A transactions closed in the first nine months of 2025 – an 8.5% jump over the same period last year. Total deal value held roughly flat at ~$5.4 billion, suggesting a shift toward smaller deals alongside a few standout mega-deals. For example, CVC-backed Mehiläinen’s 1.4 billion USD purchase of Regina Maria drove much of the disclosed value upsurge.Regionally, the picture was mixed: Europe saw overall deal count still lethargic (up just 5–6% in volume for 2025, with EMEA down ~7% in deal count), even as total value rebounded (+36% globally). In practical terms, 46% of European advisors reported no change in deal volume in H1-2025 vs late 2024, while 34% saw an uptick. Central &amp; Eastern Europe (CEE) mirrored this stability, though average deal size fell: only 31% of H1-2025 deals were above €10M (down 10 points vs H2-2024), while smaller deals (&lt;€2.5M) became more common.From what I’ve seen in EY's study, buyer appetite in 2025 favoured firms with clear growth stories. Strategic acquirers dominated Romanian transactions (about 86% of deal count in 9M2025). However, private equity is circling again: Private Equity-backed deals in Romania rose roughly 80% from 9M2024 to 9M2025, often targeting regional or cross-border platforms. Romania remains a net recipient of foreign capital.Inbound deals (108) outnumbered outbound (79) in 9M2025. The top foreign buyers were from the US (15 deals) and UK (14), followed by Poland, Germany and France. Similarly, across Europe, 87% of mid-market exits were open to foreign buyers last year and 37% actually sold to overseas acquirers. This cross‑border interest makes sense: average EBITDA multiples vary widely by country, so bringing in foreign bidders can boost price.<h3>Structuring deals in a cautious market</h3> One clear shift in 2025 was how deals got structured. With volatility as the new normal, buyers and sellers are sharing risk more. One popular mechanism is earn-outs: deferred payments tied to future performance. Nearly half of European mid-market deals now include an earn-out and advisors report their usage rising. Dealsuite’s European Deal Terms Report found 42% of advisors saw increased use of earn-outs in 2024–25. In CEE, about 40% of respondents noted higher earn‑out usage in H1-2025. Typically these earn-outs span 6–24 months and are based on EBITDA or EBIT (69% of cases), aligning post-deal incentives when initial valuation gaps persist. Similarly, seller financing (vendor loans) is reappearing: as bank debt gets pricier (thanks to high rates), 31% of deals now use vendor loans. I’ve advised owners to expect such structures: if buyers hesitate at the valuation, an earn-out or loan bridge can make a deal work.Valuations themselves came under pressure in 2025. The Argos Index – a tracker of eurozone mid-market EBITDA multiples – fell to 8.7× in Q3 2025, its lowest level since 2017. To put that in perspective, strategic buyers paid a median ~7.7× EBITDA and PE around 9.0×, both roughly 12% below their long-term norms. In practice, 28% of deals closed under 7× EBITDA, while only 7% topped 15×. In real terms, sellers are recalibrating expectations. As one colleague observed, “the bid-ask gap is narrowing – many founders who hoped for boom-time multiples have had to adapt.”&nbsp;The evidence suggests that a well-structured transaction with contingent elements often delivers better outcomes than abandoning a deal due to valuation gaps.<h3>The role of AI and cross-border buyers</h3> Even as deal terms shifted, technology marched on. AI went from edge to everyday in dealmaking. In 2023 only 3% of European PE pros used AI regularly; by 2025 that was 41% saying it’s common practice. In the CEE-region, 69% of M&amp;A advisors now use AI tools routinely. The payoff is clearest in market research and target sourcing: about 78% of PE firms report significant added value from AI in market studies and 71% of CEE advisors agree it boosts deal origination. Even smaller firms are tapping AI for faster due diligence or legal document review. I advise owners to be tech-savvy: having clean data and a digital workflow not only appeals to modern buyers, but it lets you flag growth opportunities (and risk areas) before negotiations.Cross-border interest remains robust. We’ve already seen that many European firms are willing to sell abroad. For Romanian businesses, that means preparing for international buyers and for entrepreneurs, this is an upside: foreign bidders often bring higher offers. How? If you can show margins similar to a peer in another market but at a lower price, you jump ahead. Dealsuite’s analysis highlights that involving overseas parties can often yield a better price due to multiple arbitrage. One example from last year on a sale where EU buyers were particularly keen – because local valuations for that niche (medical devices) were already robust. In other cases, understanding the cultural fit and post merger plans (often a big cause of earn-outs) helps smooth cross-border closes.<h3>Looking ahead to 2026</h3> What does this mean for founders looking to exit in 2026 or beyond? Overall, sentiment is cautiously optimistic. In Dealsuite’s PE Monitor, 49% of respondents expect exit volumes to rise in 2026 (only 33% see them flat). For acquisitions, 57% foresee higher activity. Even in private equity, 58% of pros think exits will perform positively next year. In other words, deal flow should strengthen, especially if economic conditions continue to improve (inflation easing, central banks hinting rate cuts).However, early signs of recovery should not lead to rushed decisions. My recommendation echoes those of advisors across Europe: continue preparing, not just reacting. Buyers may return in force, but they’ll still scrutinise fundamentals. Companies with resilient cash flow, diversified customer bases and strong governance will command premium valuations.<h3>Being exit-ready: start today</h3> In practice exit-readiness means years, not months, of preparation. Based on the framework I use, the Value Builder System (used by thousands of companies worldwide), there are eight key drivers of value: things like recurring revenue, customer satisfaction, focus and owner dependency. My advice to clients is to diagnose and strengthen these areas early. For example, if your business relies heavily on one client or the founder’s relationships, start documenting and diversifying now. If profitability is high but growth is spotty, consider locking in more annuity income (a recurring revenue line). We see those being rewarded.Another mindset shift: view the exit process as a journey. Use the next year to clean up your books (prepare audited financials if possible) and tighten operations. Network with potential buyers quietly – whether trade or private equity – to sense the interest and get feedback on your value proposition. And mentally, let go of the company: building a management team that can run without you boosts price and your own freedom.Finally, stay informed with hard data and monitor local reports. These help set realistic timelines and financial expectations. For instance, knowing that 47% of sellers in Europe postponed closing in 2025 is a reminder to plan for contingencies (financing hiccups, due-diligence delays, etc.).<h3>Key Takeaways (in brief):</h3><ul><li>Stable deal volumes, smaller deals: Romanian M&amp;A deals rose ~8.5% in 9M2025. Across Europe, mid-market activity held steady albeit with fewer big tickets</li><li>Valuations under pressure: Eurozone EBITDA multiples hit multiyear lows (median ~8.7× ). Buyers are more cautious, so expect many deals to include price adjustments (e.g. earn-outs)</li><li>More earn-outs and seller finance: ~42% of advisors saw increased earn-out use in 2024–25. These deferred payments (usually 6–24 months on EBITDA) are common to bridge price gaps. Vendor loans are also rising as banks get choosy</li><li>AI in dealmaking: Adoption of AI tools has jumped. Over 70% of firms report meaningful value from AI in deal sourcing and research. Owners should harness data/tech now (e.g. CRM analytics, digital marketing) to stay competitive</li><li>Cross-border buyers: Romanian businesses attract foreign acquirers. 87% of exits in Europe were open to overseas buyers. Bringing in international bidders can drive up valuations, so prepare your company story for a broader market</li><li>2026 outlook: Market sentiment is improving. Nearly half of Private Equity pros expect more exits in 2026 and 71% of European advisors are optimistic about H2-2025/2026. This means greater activity ahead – yet deals will still favor quality</li><li>Begin exit planning now. Top advice is pragmatic: start early. Use an exit-readiness framework/program and an consultant to identify weaknesses today. Strengthen your team, systems, and recurring revenues. The most valuable companies are well-oiled machines that can run without the owner and showing that will command a higher sale price</li></ul> By combining hard market data with grounded preparation, Romanian founders can turn these shifts to their advantage. The next year should see more buyers re-entering the market – so the best time to get your house in order is now, not when you decide to sell.My sources:<ul><li>Romanian M&amp;A evolution during the first nine months of 2025 | EY - Global - <a href="https://www.ey.com/en_ro/newsroom/2025/09/romanian-m-a-evolution-during-the-first-nine-months-of-2025" data-mce-href="https://www.ey.com/en_ro/newsroom/2025/09/romanian-m-a-evolution-during-the-first-nine-months-of-2025">https://www.ey.com/en_ro/newsroom/2025/09/romanian-m-a-evolution-during-the-first-nine-months-of-2025</a></li><li>Looking Back at M&amp;A in 2025: Behind the Great Rebound | Bain &amp; Company - <a href="https://www.bain.com/insights/looking-back-m-and-a-report-2026" data-mce-href="https://www.bain.com/insights/looking-back-m-and-a-report-2026">https://www.bain.com/insights/looking-back-m-and-a-report-2026</a></li><li>European Monitor September 2025 - <a href="https://www.dealsuite.com/en/blogs/european-monitor-september-2025">https://www.dealsuite.com/en/blogs/european-monitor-september-2025</a></li><li>CEE M&amp;A Monitor August 2025 - <a href="https://www.dealsuite.com/en/blogs/cee-m-a-monitor-august-2025" data-mce-href="https://www.dealsuite.com/en/blogs/cee-m-a-monitor-august-2025">https://www.dealsuite.com/en/blogs/cee-m-a-monitor-august-2025 </a></li><li>European Private Equity Monitor 2026 - <a href="https://www.dealsuite.com/en/blogs/european-private-equity-monitor-2026" data-mce-href="https://www.dealsuite.com/en/blogs/european-private-equity-monitor-2026">https://www.dealsuite.com/en/blogs/european-private-equity-monitor-2026 </a></li><li>Deal Terms Report 2025: European Market- <a href="https://www.dealsuite.com/en/blogs/m-a-deal-terms-report-2025-european-market" data-mce-href="https://www.dealsuite.com/en/blogs/m-a-deal-terms-report-2025-european-market">https://www.dealsuite.com/en/blogs/m-a-deal-terms-report-2025-european-market </a></li><li>Argos Index® 3rd Quarter 2025 - <a href="https://argos.fund/argos-index-3rd-quarter-2025" data-mce-href="https://argos.fund/argos-index-3rd-quarter-2025">https://argos.fund/argos-index-3rd-quarter-2025</a> </li></ul>

Preparing for the next wave: M&A trends of 2025 and what to expect in 2026 for Romanian companies

Do you believe your business is worth as much as your reported revenues and profit suggest? Reality might surprise you.Many companies with “great numbers” end up not selling at all—or selling for much less than their owners hoped. And the reasons come down to subtle factors beyond the financial statements.Too often, founders learn the true value of their business only at the negotiation table with a potential buyer, by which time it may be too late to change anything. If you recognize yourself in any of the following five signs, your company may be worth considerably less than you think, even if the financials look good right now:1. The company is (almost) completely dependent on you Do you sign all the contracts? Do you personally manage relationships with major clients, approve every proposal, and make all the important decisions? If so, your company cannot (yet) be considered a scalable business, but rather a job where you wear all the hats. A buyer doesn’t want to “buy” founder dependence, but a system that runs independently of you. A firm that can’t operate without your constant presence will be valued lower, no matter how profitable it looks on paper.2. Revenues swing and are unpredictable Do you have months when the money “flows,” followed by periods when there’s barely enough for payroll? You’re not alone; many small businesses live this financial roller coaster. But such volatility scares off investors and potential buyers. When revenues are unpredictable, any projection of the company’s future value becomes a risky bet. And risk almost always translates into a serious discount on valuation.3. A single client brings in over 20% of your revenues At first glance, it’s great to have a large, stable client. But if one partner generates 20%, 30%, or even 50% of your revenues, the company becomes dangerously dependent on them. Any diligent buyer will immediately ask: “What happens if this client disappears shortly after I buy the company?” Such dependence often leads to drastic cuts in the estimated value—or even to buyers walking away entirely.4. There is no management team or solid internal processes If the answer to “Who makes the important decisions in the company?” is “Me,” your company’s value takes a hit. Without middle management, clear procedures, and the delegation of key decisions to the team, the message to any investor is clear: the business is too tied to the founder and far too fragile to survive a transition. For a buyer, that means more headaches, higher uncertainty, and… inevitably, a much lower perceived value.5. Nice profit, but no path to scale You might be generating healthy profit, but if it comes only from one-off efforts (one-time projects, unpredictable sales, or “one-person show” services), any savvy buyer will wonder: “How can this business double its revenues without also doubling its costs?” Without a scalable growth model—one where revenues can increase without resources and expenses rising proportionally—any investor’s enthusiasm will fade. And along with it, the amount they’re willing to pay for your company drops dramatically.6. The business model has fallen behind the market In Romanian IT, we often see companies stuck in an outdated business model: pure outsourcing, classic BPO or “body leasing” rebranded under more modern labels. The company may seem to be doing fine short-term, but strategic buyers look for something else entirely: your ability to stay relevant long-term. If you haven’t made the strategic moves and investments toward higher-value areas (e.g., proprietary products, complex services, end-to-end solutions with ownership of outcomes and risk, real innovation), your company will be perceived as a “player of yesterday” in a fast-moving market. The result? Lower valuation, even if you’re still invoicing substantial amounts.🎯 Conclusion The uncomfortable truth is that many companies that appear successful are not ready for a favorable sale when viewed through a buyer’s eyes. And the reasons aren’t necessarily about current profit—the structure of the business, hidden risks, internal processes, and the company’s independence from the founder matter far more.If you’re an entrepreneur wondering what your company would truly be worth to an investor, start by analyzing it coldly, from the outside. Set aside emotional attachment and think like an objective buyer interested only in facts.How many of these signs do you check off? Share your thoughts in the comments and let’s talk on LinkedIn—I’m curious to hear your perspective. And if you’ve realized your company fits one or more of these points and you want to know how to increase its value, send me a message.The right conversation at the right time can make all the difference!"

Top 6 signs your company is worth less than you think

For many entrepreneurs, an excellent product seems like the guarantee of success. You invest time, money, and passion into developing something innovative or better than what the market offers. Customers are satisfied, feedback is positive, sales grow.And yet… when the time comes for an external valuation—whether to attract an investor or for a potential exit—the reality hits hard: the company’s value is lower than expected.How is this possible, if the product works and customers appreciate it?&nbsp; 1. Buyers don’t buy products, they buy business models A good product is only one part of a company’s perceived value. In fact, for an investor or a strategic buyer, the product is important… but rarely decisive.What are they actually looking for?<ul><li>Recurring revenues</li><li>Predictability</li><li>Scalability</li><li>Systems, not key individuals</li><li>Strategic market positioning </li></ul>No matter how high-performing, a product that is not supported by a repeatable and scalable business model remains just a “good idea” in the hands of a capable founder—not a valuable asset that can be acquired and taken further.&nbsp; 2. Product performance does not automatically mean transferable value There are countless examples of firms that developed technically flawless software solutions, but failed the “transferability” test.Why? Because the product was:<ul><li>difficult for outsiders to understand</li><li>poorly positioned in the market</li><li>sold through an ad-hoc process, with no documentation or automation</li><li>dependent on the founder’s presence to convince customers or implement it </li></ul>The value of a company is not determined by how good the product is for the current founder, but by how easily it can be understood, sold, marketed, replicated, and operated by someone else.&nbsp; 3. A good product does not guarantee strong market positioning You may have superior technology or an outstanding service, but if the market does not understand the differentiation, the perceived value remains low.The harsh reality is:<ul><li>The market rarely buys technology—it buys outcomes</li><li>Customers don’t choose the “best” product—they choose the clearest promise</li><li>Investors don’t pay for engineering—they pay for growth potential </li></ul>If your product is just one of many “good” ones on the market, without clear positioning or obvious differentiation, your company will be seen as one of many solid but replaceable firms. And replaceable equals low value in the eyes of a buyer.&nbsp; 4. Product success does not equal company success You may have a product that sells well, you may have landed a big contract, a key client, or a series of profitable projects.But isolated success is not the same as lasting business value.Buyers want to know:<ul><li>How did you achieve that success?</li><li>Can you repeat it?</li><li>Was it a lucky strike or the result of a scalable process?</li><li>Can the success be replicated in other markets, contexts, or with another team? </li></ul>If the answer is vague or relies on your intuition, energy, and personal relationships, then the company’s real value drops drastically, regardless of the product’s short-term success.&nbsp; 5. Good companies sell, but “product-dependent” companies struggle to survive In an objective evaluation, a company must be seen as a system for delivering value, not just as a product creator.Companies with a “good” product but without:<ul><li>recurring customers</li><li>repeatable sales processes</li><li>a management team</li><li>strategic market positioning</li></ul> … are, in fact, vulnerable. And vulnerability = risk. And risk, very simply, means lower value.&nbsp; 🎯 Conclusion A good product is a solid foundation, but it’s not enough.The real value of a company comes from everything built around that product: team, processes, positioning, delivery system, customer relationships, infrastructure, scalability.If you want your company to be not only remarkable for its product but also valuable in the eyes of a buyer or investor, you must look beyond the product—and start seeing the company itself as your main product.&nbsp; 📩 Want to find out what your company is truly worth? Take the Value Builder Score™, a tool used by tens of thousands of entrepreneurs to assess the 8 key drivers that influence a company’s value.👉 Request your evaluation <a data-mce-href="https://score.valuebuildersystem.com/kardia-consulting/adrian-orasan" href="https://score.valuebuildersystem.com/kardia-consulting/adrian-orasan" data-mce-selected="inline-boundary" target="_blank" rel="noopener">HERE﻿</a>…or send me a direct message and let’s discuss what it means, in your case, to move from having a “good product” to building a “valuable company.”

Why having a good product is not enough to increase your company’s value

For many entrepreneurs, the value of a business is directly linked to financial figures – especially revenue, EBITDA, and market multiples. These are, of course, important and provide an overview of the company’s past financial performance. However, to understand the true value of a business, we need to look at it from the perspective of buyers, beyond these traditional indicators.For a buyer, evaluating a business is not just about what has been achieved so far, but also about future potential. What risks are involved in acquiring this business? What factors make it a solid investment? What makes it attractive compared to other investment options in the market? These are the questions a buyer asks when analyzing an acquisition opportunity.In this equation, the factors contributing to a business’s value are essential. The 8 key factors outlined below, if understood and implemented correctly, can make the difference between an average business and an extremely valuable one.&nbsp;1. Financial performance is essential but not enoughOf course, strong financial performance – good profit margins, stable revenue, and healthy cash flow – is important. However, a buyer will not be impressed by past numbers alone. What they really want is a business that offers clear growth prospects. For example, a company that can demonstrate a recurring revenue model is much more attractive than one that relies solely on occasional projects.Financial performance is not just about how much you earn now, but also how easily the company will be able to generate revenue in the future. That’s why it’s important to have clear and transparent accounting and be able to show that there is an efficient system for managing costs and cash flow.&nbsp;2. EBITDA and multiples are just part of the storyMany focus on EBITDA and market multiples to evaluate a business’s value. However, these indicators are not enough to fully understand the potential of a company. EBITDA may reflect profitability, but it doesn’t account for the risks or the long-term structure of the business.The revenue or EBITDA multiple can vary greatly depending on the industry and economic context, and a buyer will look at many more factors than just these numbers. For example, if a business relies on a single client or an exclusive supplier, this may present significant risks, and buyers will assess these risks when determining its value.&nbsp;3. The key factor of the “Switzerland Structure”Buyers are interested in stability, and a business that depends on a single client, a single supplier, or a key employee can be a major risk. This is where the concept of the “Switzerland Structure” comes in. It refers to the idea that a business should operate efficiently and generate steady revenue without relying too heavily on a single entity.Imagine a business with a balanced structure – like Switzerland, which doesn’t rely on one partner or resource. Diversifying the client base, suppliers, and employees is a key element in increasing the value of a business. If your company can function well even without the direct involvement of a single supplier or employee, it becomes much more valuable.&nbsp;4. Growth PotentialBuyers don’t just acquire stable businesses, they also acquire businesses that offer long-term growth potential. They will want to see that there are opportunities to expand into new markets, new sectors, or through new products. For example, a company that can demonstrate easy expansion into a different geographic region or new market verticals will be much more attractive than one that has already reached its growth limit.If your business has a clear, realistic scalability plan that can be implemented quickly, you’ll definitely attract more buyers and, consequently, a higher offer.&nbsp;5. Market control and niche monopolyBuyers love monopolies, not just because they are profitable, but because they offer market control. If your business has a significant competitive advantage or even a monopoly in a niche, you’ll be able to set prices and achieve higher margins, which will lead to a higher valuation.Specializing in a niche may seem like a risky strategy at first, but in the long term, a company that dominates a small but profitable market segment is far more valuable than one that competes in a crowded market.&nbsp;6. Recurring revenue and financial stabilityRecurring revenue is one of the most powerful elements that can increase a business’s value. If you can show that your business generates stable income through long-term contracts or subscriptions, you’ll reduce uncertainty for a potential buyer. This means fewer risks and more financial stability, which enhances the attractiveness of your business in the long run.&nbsp;7. Customer satisfactionCustomer satisfaction is one of the strongest indicators of a business’s success. Buyers don’t just want a profitable business; they want a business that has a loyal customer base and a high chance of attracting new customers because of its reputation. Net Promoter Score (NPS) and positive testimonials are key elements that prove your business can maintain and grow long-term relationships with clients.&nbsp;8. Independence from the owner: the “Hub &amp; Spoke” modelAnother important factor in evaluating a business is the extent to which it can operate independently from the owner. Many buyers avoid businesses that rely too much on the direct involvement of the owner. If your business is a “Hub &amp; Spoke” model – meaning all decisions go through you – it will be much harder for a buyer to imagine how they could take over the business without a long adjustment period. It’s important to develop processes and invest in building a reliable management team to ensure business continuity without constant involvement from you. ConclusionIn conclusion, the value of a business cannot be reduced to its past financial performance or traditional indicators such as EBITDA and market multiples. A buyer will assess the business from a much broader perspective, focusing on factors that demonstrate stability, scalability, and growth potential. Creating a business that can operate efficiently without depending on a single client, supplier, or employee, with recurring revenue and high customer satisfaction, will attract buyers and significantly increase your business’s value.Therefore, when building your business, think about its future potential. A solid foundation, on which any buyer would want to build, is obviously attractive. By doing so, you’ll transform your business into a valuable asset capable of attracting interesting offers in the long run.

The value of a business: why financial performance alone is not enough

In a world where complex challenges often seem insurmountable, a few leaders have demonstrated in recent years that transformative change is not only possible but achievable in a remarkably short time. From addressing social issues like gang violence to revitalizing national economies, these leaders embody the essential principle of leadership, which states that while ideas drive innovation, execution transforms reality.Their stories serve as action plans, showing how determination, courage, and effective execution can bring remarkable results in politics, business, and beyond.<h3>1. Nayib Bukele – The “Revolutionary” from El Salvador</h3>El Salvador, once synonymous with gang violence, has undergone a dramatic transformation under the leadership of President Nayib Bukele. Through his controversial but undeniably effective policies, Bukele addressed a seemingly insurmountable problem: the gangs’ control over communities.His administration implemented unprecedented measures, including deploying military forces and large-scale incarcerations, which led to a significant drop in crime. As <a data-mce-href="https://www.lawfaremedia.org/article/bukele-has-defeated-el-salvadors-gangs-now-how-and-what-does-it-mean-region" href="https://www.lawfaremedia.org/article/bukele-has-defeated-el-salvadors-gangs-now-how-and-what-does-it-mean-region" target="_blank" rel="noopener">Lawfare Media</a> emphasizes, this crackdown not only improved public safety but also restored citizens’ trust in their government’s ability to enforce order. However, critics point out the potential human rights implications, highlighting the balance needed when taking radical measures.<h3>2. Javier Milei – Economic revitalization in Argentina</h3>Few countries have experienced economic turmoil as persistent as Argentina. Decades of mismanagement, inflation, and fiscal deficits left citizens disillusioned. Enter Javier Milei, a libertarian economist who became president and wasted no time in implementing large-scale reforms.Milei’s strategies, based on economic discipline, include reducing government spending, eliminating subsidies, and promoting a market-based approach. In just one year, these measures yielded extraordinary results. According to the <a data-mce-href="https://www.freiheit.org/one-year-javier-mileis-economic-policy" href="https://www.freiheit.org/one-year-javier-mileis-economic-policy" target="_blank" rel="noopener">Friedrich Naumann Foundation</a>, Argentina recorded its first financial surplus in 14 years, marking a historic shift. <a data-mce-href="https://www.reuters.com/world/americas/argentina-logs-first-financial-surplus-14-years-2024-2025-01-17/" href="https://www.reuters.com/world/americas/argentina-logs-first-financial-surplus-14-years-2024-2025-01-17/" target="_blank" rel="noopener">Reuters</a> details how these reforms reduced inflation and increased investor confidence.What makes Milei’s leadership remarkable is his ability to challenge deeply entrenched norms while maintaining public support—a crucial trait for leaders who seek to drive transformative change.<h3>3. Elon Musk and Vivek Ramaswamy – Reinventing fiscal efficiency in the U.S.?</h3>Elon Musk and Vivek Ramaswamy have increasingly become advocates for reforming inefficient financial systems, proposing bold approaches to reduce waste and improve government accountability. Their focus is on streamlining processes and addressing long-standing inefficiencies that burden taxpayers and hinder economic growth.As <a data-mce-href="https://www.bbc.com/news/articles/c5y86vv0wneo" href="https://www.bbc.com/news/articles/c5y86vv0wneo" target="_blank" rel="noopener">BBC</a> highlights, Musk has been vocal about the importance of rethinking traditional frameworks for managing public funds. He emphasizes the need for transparent and efficient systems that minimize waste while maximizing taxpayer value. Similarly, Ramaswamy has supported fiscal policies aimed at eliminating inefficiencies and promoting responsibility in public spending.While their approaches are ambitious and aimed at a global stage, the principles behind their ideas—accountability, innovation, and strategic execution—are universally applicable. Their commitment to transforming outdated systems into models of efficiency offers valuable lessons for leaders worldwide, whether in government, business, or beyond.I know, the U.S.A. is not Argentina or El Salvador, but it represents a much more complicated and complex economic, political, and military environment. Whether they will eventually have the courage to implement their bold policy in a country like the U.S., whether they will have the right context to do so, or whether they will succeed, remains to be seen in the coming years. But the idea is already here!<h3>Leadership lessons: From politics to business</h3>The common thread in these stories is a leadership style based on bold vision and disciplined execution. As a consultant and business advisor, I see these principles resonating not only in government but also in organizations of all sizes. Here are some essential lessons for leaders in all fields:1. Determination and Commitment: Success requires unwavering focus, even in the face of opposition. Leaders like Bukele and Milei faced criticism but stayed true to their vision.2. Building Competent Teams: No leader succeeds alone. These case studies highlight the importance of surrounding yourself with experts who can turn strategy into action.3. The Courage to Take Unpopular Actions: Transformative change often involves making tough decisions. Whether it’s cutting subsidies or fighting powerful gangs, these leaders prioritized long-term goals over short-term approval.4. Discipline and Precision in Execution: Vision without execution is just ideology, and “Ideas are great, but execution is king”. These leaders didn’t just theorize—they acted decisively.<h3>A plan for leadership</h3>Whether in politics, business, or any other field, the formula for transformative leadership remains the same: vision, courage, and execution. Bukele, Milei, Musk, and Ramaswamy remind us that no problem is too big when leaders are willing to challenge norms, innovate, and execute relentlessly.In our roles as business advisors and consultants, we must adopt this mindset, helping our clients not only develop bold strategies but also implement them effectively. After all, the true measure of leadership lies not just in ideas but in their impact on the world, isn't it ?

From vision to victory: leadership lessons from bold global reformers

The IT industry in Romania, which has long been an essential driver of the national economy, has been facing significant changes over the past few years. Known for its rapid growth and ability to attract foreign investments, this sector now faces challenges related to fiscal changes, rising wages, and the loss of competitiveness in pricing.<h3>Evolution of the IT sector: a retrospective view</h3>According to the National Institute of Statistics (INS), the IT&amp;C sector contributed approximately 7% to Romania’s GDP in 2022, generating revenues of over 15.5 billion euros. Growth was driven by international demand for outsourcing services and software development. Also, according to a <a data-mce-href="https://www.revistabiz.ro/angajatii-romani-din-it-printre-cei-mai-competitivi-si-bine-pregatiti-din-regiune/" href="https://www.revistabiz.ro/angajatii-romani-din-it-printre-cei-mai-competitivi-si-bine-pregatiti-din-regiune/" target="_blank" rel="noopener">report from ANIS</a>, the number of IT specialists in Romania exceeded 220,000, with the majority involved in outsourcing projects for Western European and North American markets.However, starting in 2023, several significant changes have put pressure on the sector:1. Fiscal Changes: The elimination of the income tax exemption for IT employees has increased operational costs.2. Outsourcing Market Stagnation: Rising wages and service price increases have reduced Romania’s competitiveness compared to other Central and Eastern European (CEE) countries like Poland and Bulgaria.3. Globalized Labor Market: IT specialists in Romania can now work remotely for companies from all over the world, increasing labor mobility but reducing loyalty to local employers.<h3>IT services that have performed and those that have lost relevance</h3>In the past, outsourcing and software development were the main growth drivers for the IT sector:• IT Outsourcing: According to INS data, in 2020, over 60% of the IT sector’s revenue came from outsourcing. International clients appreciated the low costs and quality of services offered by Romanian firms.• Team Augmentation: Hiring dedicated teams for external clients was a widely used model, allowing companies to offer flexible and scalable services.Currently, these services have lost some of their relevance due to rising salaries and fiscal pressure. Additionally, many companies are facing difficulties in differentiating themselves from local and regional competitors.On the other hand, a few emerging technological niches have gained traction:• AI and Machine Learning-Based Solutions: Investment in R&amp;D for developing innovative products has grown significantly.• Cybersecurity: More and more companies are specializing in cybersecurity services, given the rise in cyberattacks.• Cloud Services: The demand for cloud migration and management continues to grow, making it a profitable niche.<h3>Key challenges for IT companies in Romania</h3>• Loss of Competitiveness in Pricing: Average salaries in the IT sector have exceeded 2,000 euros net per month, making outsourcing less attractive.• Talent Loss Risk: International companies offer higher salaries and remote opportunities, attracting Romanian specialists.• Excessive Dependence on Outsourcing: Most companies rely on outsourcing contracts, making them vulnerable in the face of a global economic slowdown.<h3>Solutions for survival and growth</h3>I see some solutions for the mid and long-term revitalization of the competitiveness of local IT companies, like:• Development of Proprietary Products: Companies should invest in creating software products and proprietary solutions that can generate recurring revenue. Successful examples include SaaS platforms and mobile applications developed by Romanian start-ups.• Specialization in Technological Niches: Focusing on areas such as AI, blockchain, or cybersecurity can add value and differentiate Romanian firms from CEE competitors.• Investment in R&amp;D: According to <a data-mce-href="https://ec.europa.eu/eurostat/statistics-explained/index.php?title=R%26D_expenditure" href="https://ec.europa.eu/eurostat/statistics-explained/index.php?title=R%26D_expenditure" target="_blank" rel="noopener">Eurostat</a>, firms that allocate budgets for research and development are more likely to survive economic shocks.• International Collaborations: Partnerships with universities and business accelerators can facilitate access to new markets and technologies.• Building a Strong Brand: Companies need a clear identity and strong differentiators to attract clients who prioritize quality, not just cost.• Adoption of a Hybrid Business Model: Combining outsourcing with the development of proprietary products and premium services can ensure long-term sustainability. <h3>Conclusion</h3>The IT sector in Romania still has the potential to remain competitive in a constantly changing global context, but it can no longer continue with the strategies of recent years. Instead, it must adopt a new strategy based at least on: diversifying offers, investing in innovation, and developing proprietary products.Only through this approach will Romanian companies be able to overcome the current challenges, withstand increasing competition, and contribute significantly to the national economy, despite the fragile and often unpredictable economic and fiscal context.

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