Romania Due Diligence: Best Practices for US Companies

The Romanian market offers a wide range of investment, acquisition, and business partnership opportunities, including joint ventures, licensing agreements, distributorships, and franchises. However, it is crucial for US companies to conduct thorough due diligence on potential investments or business partners to minimize risks and ensure successful collaborations.

Importance of Due Diligence

According to the US Commercial Service Romania, American firms should engage reputable legal counsel to navigate the Romanian market. Legal advisors in Romania can assist with:

Incorporation
Permit acquisition
Intellectual property registration
Contract preparation
Collection
Commercial disputes resolution

Moreover, they can provide valuable insights into potential problems based on their experience in the market.

Vetting Business Partners

It is essential for US companies to thoroughly vet their business partners, including consultants, distributors, or credit extension recipients. This includes:

Conducting a thorough background check
Verifying financial status and references
Ensuring that contracts are clear and comprehensive

International Company Profile (ICP) Service

The US Commercial Service Romania offers an International Company Profile (ICP) service that investigates the background, financial status, and references of Romanian firms. The ICP includes:

Findings from interviews with the target company and suppliers
Customer references
A recommendation regarding the subject’s reliability as a business partner

Global Network

US companies can also take advantage of the US Commercial Service’s global network, comprising 108 offices across the United States and over 75 countries. The service provides international marketing expertise to help US companies sell their products and services worldwide.

By following these best practices for due diligence in Romania, US companies can minimize risks and ensure successful collaborations in the Romanian market.