CORPORATE
GOVERNANCE AND PRIVATE EQUITY
Corporate governance is “the”
major hurdle for Foreign Direct Investment in Turkey.
·Functioning Board and proper business planning
processes
·Professional and “legal” tax management
·Consolidated and manageable structures
·Investment in systems to report correct key indicators
on time
·Enforcing the meritocracy from the Board
down to management
Private Equity
Fix
Current Practice
·Family owned companies with
informal decision making
informal decision making
·Adventurous tax management
to avoid paying inflation taxes
to avoid paying inflation taxes
·Complex webs of related party companies
·Absence of realistic management reporting due to
complex structure
·Inability to eliminate underperforming shareholders
in management positions
Source: Turkven
PE will improve
corporate governance and catalyze FDI to portfolio companies
corporate governance and catalyze FDI to portfolio companies
