Faced with high inflation, an energy crisis and falling consumer confidence, the biggest opportunity for tech companies in 2023 is to adopt an active mergers and acquisitions (M&A) strategy – according to an annual EY report, Top 10 opportunities for technology companies in 2023. As valuations come down, the appetite for deals is set to return next year. This is supported by a recent EY study, which finds that 72% of tech CEO respondents plan to pursue M&A in the next 12 months, compared with 59% of CEO respondents across all industries. Iulia Bratu, Partner, Head of Lead Advisory, EY Romania: “Technology was the No. 1 sector for Romanian M&A in 2022, representing around 20% of the total number of deals and being mainly driven by inbound transactions. Furthermore, technology is the leading sector in M&A activity for the cumulative period 2018 – 2022. While transaction values remain mostly undisclosed, the strong historic trend and expectations that global activity will increase in 2023 can only indicate an even more positive outlook for Romania.” Supply chain makeover Improvements in the supply chain over the last few years have been thwarted by a decline in the political, economic and financial climate. In third place on this year’s ranking is the opportunity for tech businesses to reduce their dependency on geopolitically unstable geographies by doubling-down on localization. And tech executive respondents are on board, with 78% now planning to decouple their supply chain – including nearshoring and reshoring. Retain top talent The opportunity for businesses to build an agile talent strategy is at ninth position on the ranking. Up until a few months ago, the biggest workforce challenge for tech businesses was “The Great Resignation.” Driven by a re-alignment in work priorities during the COVID-19 pandemic, 56% of employee respondents in the sector indicated that they were considering leaving their current role in the pursuit of higher pay, better wellbeing programs and new career opportunities. Today, the sector is not only dealing with talent shortages to fuel long-term growth, but also with hiring freezes and layoff rounds in response to economic uncertainty. Sustainability reporting and edge computing The report further predicts that environmental sustainability (fourth position in the ranking) will impact the tech sector in 2023 more so than in previous years, as companies adapt to comply with incoming regulation on disclosure around emissions and climate change risks. And a new entrant in seventh position is the potential for edge computing to reach maturity in the next 12 months for those businesses that are willing to invest in new IT architectures. The full list of top 10 opportunities in technology for 2023 are: Accelerate M&A strategy execution to strengthen growth profile Experiment with platform ecosystems to disrupt the market Double-down on localization, even if it comes at a cost Prioritize environmental sustainability Introduce pay as you go to attract complementary revenue streams Leverage analytics tools to optimize revenues Invest in edge ecosystem to improve operations and experiences Cyber, cyber, cyber … ensure data protection Drive an agile talent strategy to match resources with company need Prepare for global minimum tax reform
Real estate developer Globalworth has begun construction on Green Court D, the fourth building in its Green Court office complex in Bucharest’s Aurel Vlaicu area. Scheduled for completion in 2027, the project is now in its preliminary phase, which includes enclosure works and excavation for the basement structure, the company said. The new building will […]
Romania’s National Committee for Emergency Situations decided to distribute drinking water from the state reserves to 13 localities in the counties of Prahova and Dâmboviţa. The area was severely impacted by a drop in water levels at the Paltinu Dam, leading to problems in the water distribution system and affecting over 100,000 people, local hospitals, […]
Rock star Marilyn Manson will return to Romania next summer to perform at Rockstadt Extreme Fest, organizers announced on Tuesday, December 2. He is among the headliners confirmed for the local rock and metal festival, which will take place from July 27 to 31 in Ghimbav, Brașov county. “For the first time ever, Marilyn Manson […]
Romania’s government has assumed responsibility in Parliament for legislation reforming magistrates’ pensions, prime minister Ilie Bolojan announced on December 2. He said the draft law had received the opinion of the High Court of Cassation and Justice, noting that the court’s assessment was negative. It is the government’s second attempt to have the bill promulgated, […]
Romania Education Alliance (REA), the first private school network in the country, announced it has exceeded the milestone of 1,000 students enrolled across its member schools just one year after launch. "The fact that we surpassed 1,000 students in our very first year of activity shows that the REA model addresses a real need in […]
Genesis College, one of the largest private educational institutions in Romania, announced the regulatory approval of the transaction through which the investment firm Mozaik Investments becomes its majority shareholder. The transaction, signed at the end of July, received all necessary approvals from the Competition Council on November 25, and, formally, the entire investment procedure is […]
