Vcheck is thrilled to announce the addition of Romanian language capabilities to our suite of services. This expansion allows us to better serve clients interested in expanding and investing in Eastern European markets.
Why Romania?
Similar to other Eastern European countries, Romania is emerging as a hotbed for tech innovation and investment. As the largest producer of electronics in the region, Romania is attracting attention from firms worldwide. In 2022, Romania received $11.2 billion in foreign direct investment, and the number is projected to rise in coming years.
Romania’s business climate is ripe for investment, but other factors, like corruption, impede business in the region. Hence the importance of thorough international due diligence, a critical tool to provide clarity in cross-border transactions.
Eastern European Due Diligence: The Importance of Native Speakers
Conducting thorough due diligence in Romania presents unique challenges that require specialized expertise. In Romania specifically, stringent privacy laws, information scarcity, and general cultural attitudes impede due diligence:
Information Scarcity
Compared to the U.S., lack of documented information is a key concern when conducting due diligence in Eastern Europe. Much public information is protected by the country’s rigid privacy laws, and what remains is largely on paper, meaning that investigators have few opportunities for traditional, digital public records research.
Furthermore, local websites in the area aren’t very user-friendly, making standard search methods more complicated, if not ineffective.
Native investigators in Romania understand how to craft precise search queries using dirty word strings to uncover important information. They can also better navigate regional bureaucracy and use their native understanding of the region to assess and interpret localized documents.
Regulation & Privacy Laws
As an EU member, Romania adheres to strict privacy regulations. GDPR guidelines significantly limit the type and scope of information available to investigators, complicating due diligence. Similar to the rest of the EU, investigators in Romania and Eastern Europe cannot rely on educational information to identify subjects, instead relying on other more creative methods.
Romania is home to some of the strictest privacy legislation in the EU. Access to public information in Romania is governed by law 544/2001, which allows journalists and citizens to request data from government agencies. This rule places 10-30 day waiting periods on records requests. Worse for due diligence, many records can only be accessed in person.
Firms with non-native speakers may struggle to access enough information to properly pinpoint risk. Conversely, native experts understand how to work within these constraints to gather necessary data legally and ethically.
Cultural Considerations
Romania’s communist history has significantly shaped its culture and business practices. Those who don’t speak the language are sure to draw attention in these regions. Furthermore, conducting discreet interviews or investigations in Romania may lead to skepticism and closed doors for non-native speakers.
On the other hand, native speakers understand these subtleties and their impact on due diligence. In a culture where information is often closely guarded, native speakers can build the trust necessary to gather crucial insights.
Vcheck’s Eastern European Capabilities
Without native speakers familiar with these concerns, conducting effective due diligence in Romania is akin to navigating a maze blindfolded.
While the complexities of Romania’s business landscape are significant, seasoned due diligence firms like Vcheck leverage specialized tools and insight to conduct thorough due diligence across the European landscape:
- Country-specific expertise: We offer over 20+ languages in-house, and each of our investigators is a native expert in each jurisdiction we offer. Our focus on native speakers expands our scope, allowing us to close the paper-information gap in 200+ countries and regions.
- Jurisdiction guides: Vcheck’s investigators detail local legal frameworks, business practices, and cultural nuances approaches, methods, and sources in jurisdiction guides, signifying our commitment to consistent results.
- Discreet interviews and HUMINT: Vcheck uses an extensive network of multilingual investigators and industry experts to go beyond the paper trail, coloring investigations with context and human intelligence. Touchpoints with industry experts expand our scope and help us pinpoint red flags.
As business development in Eastern Europe continues to accelerate, particularly in the tech sector, having reliable partners with genuine local expertise is more crucial than ever. Our Romanian language capabilities ensure that we can provide our clients with the thorough, nuanced due diligence they need to make informed decisions in this dynamic market.
Whether you’re considering investing in Romania’s booming tech scene or exploring other opportunities in the region, our team is ready to support your due diligence needs with authentic local insight and expertise.
To learn more about Vcheck’s global capabilities, contact us.
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