With a keen eye on the evolving dynamics of entrepreneurship and law in Romania, Alex Teodorescu – a former Olympian and the Founder and Managing Partner of Teodorescu Partners – offers a fresh perspective on business and investing, the entrepreneurial spirit within the legal profession, and some noteworthy recent regulatory developments.
"The most significant shift I've observed is the rise of entrepreneurs investing in smaller companies," Teodorescu begins. "After reaching a development milestone, say EUR 3 to 5 million, they begin to either make strategic investments or start acquiring companies that align with their existing business." He finds this trend of "going shopping" for businesses remarkable, as "it signals a move away from chasing unicorn status towards fostering a robust ecosystem of small to medium enterprises."
"Just a few days ago, I saw a LinkedIn post stating that Romania and similar jurisdictions don't necessarily need more unicorns but rather a multitude of deals in the range of EUR 10 to 100 million. There are a few things I could agree with more. The focus should be on nurturing small companies and encouraging investors to take an interest in them – this approach, I think, is where the future of our market lies," he posits.
Shifting gears to the legal industry, Teodorescu observes a "palpable shift towards independence in the legal profession. Many talented leading individuals from medium to large firms are venturing out on their own, bringing their expertise and networks to create new, dynamic law practices," he says. "This trend is enriching the legal market with diverse know-how and fostering a more competitive environment."
Moreover, Teodorescu highlights a change of thinking among lawyers in Romania. "Today, being a lawyer goes beyond just offering legal services; it's about being an elite professional who thinks and acts like an entrepreneur. This mindset shift is crucial for survival and growth in the legal market." According to him, there are more and more legal practitioners who "not only leave established firms to start their own, but also innovate in how they manage and grow their practices, truly embodying the spirit of legal entrepreneurship. This transformation is leading to a more diversified and competitive landscape."
Teodorescu posits that, if this trend of legal professionals "becoming entrepreneurial leaders continues, we're likely to see an increase in the number of players in the market – this competition isn't just about the quality of legal services anymore but about differentiation and the value we can bring to our clients beyond traditional legal advice. We must shift from being classic law service providers to becoming true business partners."
Finally, turning to some of the recent regulatory changes of note, Teodorescu underlines two key developments. "First, the enforcement of anti-harassment regulations and the introduction of substantial fines for non-compliance. These really underscore the importance of creating a safe and respectful workplace," he reports. "Second, the newly transposed whistleblowing regulations offer a framework for addressing abuses within organizations effectively. These changes are crucial for ensuring that businesses not only focus on growth but also on creating an environment where employees feel valued and protected," Teodorescu concludes.
