The year 2020 will be, for many of the Romanian companies, one in which the reorganization of the business will be at the forefront. Given the challenges in the economic environment, from rising operational costs to the labor crisis, many companies will reconfigure their businesses, focusing on streamlining activity and avoiding financial bottlenecks, Sierra Quadrant analysts estimate.

After in 2019 the Romanian business environment went through a real general cleaning, anticipated by the Sierra Quadrant, over 126,000 companies being closed or dissolved, 30% more than in the previous year, this year the buzzword will be the reorganization of the business, estimates the company, one of the main players in the insolvency market in Romania.

“The new year will mean, for many of the Romanian companies, especially those in the SME sector, a turning year in which they will have to make strategic, absolutely necessary decisions. Increasing operational costs, including in the human resources segment, the difficulties in the cash-flow area and the extension of the financial blockade will lead to a decrease in the appetite for investments in many sectors of the economy, an increase in the disintermediation process, and this phenomenon will be translated by an extensive process of reorganization of businesses in many sectors of the economy, from trade to manufacturing, agriculture, transport and construction,” Sierra Quadrant analysts estimate.