In the beginning of every new year weekly “Important out loud” traditionally have asked experts to make conclusions on development of financial sector of 2008 and state its perspectives for 2009.
Konstantin Smolentsev, Ph.D., Academician of IIA, CMC, Chairman of the Board of Directors of IC “SMOLENTSEV and Partners”:
- Don’t want to repeat many of the macro-economical analytical reviews of last year and prognosis for 2009. Just want to say that for our corporation year of 2008 has become very important due to the reason that together with partners we have released “club” bonds on Russian share market – new financial tool to finance average companies. And now I clearly understand that in developed economic conditions this tool is becoming more in demand than in times of stability. Reason – precise target use of attracted resources and voluntary openness of company-emitter with understandable and negotiable for all parties criteria for development.
My strong belief: 2009 is providing thinking businessmen with lots of opportunities. Especially to those heads and shareholders who in times of economical rise have actively worked on corporate construction. In other words, thought not only about invasion of new regional markets and increasing volume of production and sales, but also about the fact that organizational part of business – its management, structure, team, unique market positioning, clear view of future – has to be coordinated with shareholders’ expectations and set goals. By the way, favorable times are coming for shareholders to repay own shares and increase shares in companies. Other side – for raiders it has become easier to capture enterprises, especially, I will repeat myself, those which are not able to work effectively in critical situations and didn’t generate necessary resources to protect their business.
Without a doubt, in tough conditions of crediting, “second breath” will open on bill market. With one clause: such way of attracting finances will be available only to large companies or for companies, that in previous years consciously have been forming their PUBLIC credit history.
In process of strengthening appeal of cost of actives (moment when investors having significant means cannot resist fallen market prices) dynamics will increase in market of merges and absorption. Other aspect: if before deals were based on strategic thinking, now another reason will be processes of restructuring and consolidation, connected with the crisis situation.
It is expected that approach of investors to strategic investment will be more weighed. From our experience and estimations, sizes of limits and actual presence of financial resources investors have, has insignificantly changed in comparison to last year. What has changed is approach to making a decision on investing. And that change of positions is giving new opportunities to many companies to actively develop their businesses.
Summarizing all said above, I can make a conclusion that in 2009 those will be “riding a horse”, who found time and forces to perfection their business.
Conclusion for all (or for those who learn on their mistakes) – only healthy business-organism is capable to resist market epidemics and be competitive.
Author: Alyona Bouchelnikova
January 23rd, 2009