EUROPE Ltd was invited to the negotiated procedure to review the portfolio of the companies owned by the Ministry of Economy.

The aim of the assignment was to scan the companies if they needed to stay as state-owned company or they should be privatised, closed, merged with other companies owned by other public entities.

The work consisted of the following parts:

• Assessment of the professional performance of the company,
• Description of the role they play in the sector,
• The assessment, if they distort competition by being state-owned
• The regulatory aspects,
• The financial aspects both for their operational and investment targets
• The conditions of their potential sale

EUROPE Ltd assessed two companies from the portfolio of the Ministry of Economy:

• Information Technology Innovation Park Company
• Hungarian Economic Research Institute Ltd

The assessment method consisted of

• desk-study research,
• interviews with the Portfolio Management Department of the  Ministry of Economy
• SWOT analyses
• reviewing the industrial regulation related to the companies
• enterprise valuation with different methods (net present value, DCF, etc.)

The Ministry of Economy accepted the suggestion of EUROPE Ltd, outlined in the study and kept Information Technology Innovation Park Company in its portfolio, while the Hungarian Economic Research Institute, a consulting company that only distorted the market with its state background, was closed down.