Date: 20.09.2019

Readed: 168

Karoll Investment Jsc (Karoll) is a leading strategic consulting firm in Bulgaria with over 15 years of investment banking experience. Karoll is a member firm of Oaklins – one of the world’s most experienced mid-market M&A advisors, with 800 professionals globally and dedicated industry teams in over 40 countries on 6 continents. Oaklins has closed over 1,500 transactions in the past five years.

Atanas (Nasko) Jordanov is Karoll Investment chief executive officer heading. Karoll’s strategic consulting and M&A business. Over the past 16 years Nasko has led and executed investment banking and strategic transactions in Europe and North America worth more than US$30 billion. Prior to joining Karoll in 2017, Nasko was an investment banker and dealmaker with the bulge bracket investment banks - Goldman Sachs and Barclays Capital in New York and London, respectively. He started his investment banking career as an analyst with Morgan Stanley, USA.

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Mr. Jordanov, will you briefly describe what M&A transactions mean and how they can boost the growth of the business in Bulgaria?

Mergers and acquisitions (M&A) are transactions for buying and selling the shares (equity) of companies and from the point of view of Bulgarian businesses three types can be distinguished:

  • attracting strategic and financial investors for growth equity needed to further expand the business and share the risk of the future development of the company. In this type of M&A deals, the investor, often from abroad, can provide to the Bulgarian entrepreneur know-how and access to new clients;
  • buying the shares of a foreign business by a Bulgarian entrepreneur with the goal to acquire new sales channels and/or new products, attract know-how and strategically position his/her company, and
  • selling a Bulgarian business to an international investor, which will allow a Bulgarian entrepreneur to cash-in the many years of hard work and/or get capital for new endeavors.

Closing a successful M&A transaction and establishing a long term relationship with a foreign investor is a great tool for Bulgarian entrepreneurs to expand markets and increase productivity of their companies, and raise capital for new investments. This would inevitably increase the value of their businesses and drive a further growth to the Bulgarian economy.

What are the prerequisites for closing a successful M&A transaction and what is the role of a consultant?

  • It is important to identify and after that attract a suitable investor to partner with the relevant Bulgarian business.
  • When structuring an M&A transaction, the preparation and the choice of a proper strategy are the keys for increasing the value of a Bulgarian entrepreneur. However, the process is involved and time consuming and only with the right team in place to manage the transaction, the Bulgarian entrepreneur can duly focus on his/her business.
  • A well-positioned M&A consultant with the relevant experience and firsthand access to potential investors guarantees, to the greatest extent possible, the smooth execution of the transaction.

How Bulgarian entrepreneurs can get in touch with Oaklins and Karoll?

Oaklins is a global team with local expertise. As part of Oaklins, Karoll is responsible for the Bulgarian deal flow, and all interested parties can get in touch with Karoll and Oaklins by email or phone karoll_investment@karoll.bg, 02/4008 314.