Recap 2023: Navigating Through Challenges
As we reflect on 2023, it was undeniably a year marked by challenges, echoing the sentiments across many industries. At Drooms, we too felt the ripples of these turbulent times. Jan Hoffmeister, CEO & Co-Founder, acknowledges that the year was particularly challenging, ending a decade-long period of market growth since the last financial crisis. This transition was also felt by the Drooms team, especially the younger members for whom it was their first experience of a financial downturn.
Alexandre Grellier, also CEO & Co-Founder, resonates with this perspective. The instability in the market led to an increase in bankruptcies, directly impacting our customers’ willingness to engage in deals. Being primarily a deal platform, this was a challenge for Drooms. However, as a company we showcased resilience and adaptability in the face of this adversity, successfully focusing on the entire asset lifecycle and our long-term goals and projects.
Opportunities for 2024: Embracing Market Corrections
Looking ahead to 2024, both Jan and Alexandre see significant opportunities arising from the market’s corrections. Jan anticipates an increase in non-performing loan (NPL) activity, requiring continued transactional processes. He expects the market to stabilise, emerging from a period of reduced activity to more normalised levels.
Echoing Jan’s educated optimism, Alexandre highlights the potential in the DACH region, where market activities, albeit challenging like bankruptcies and NPL trades, will prove beneficial for Drooms. Our platform’s essential role in these transactions positions us advantageously for the upcoming year.
Challenges for 2024: Adapting to Market Uncertainty
However, with opportunities come challenges. Jan points to the uncertainty looming over global markets, especially in the first half of the year. Whilst we have seen an increase in activity on our platform in the last quarter, its yet to be seen how this will translate into Q1 and Q2 of 2024. Because of this unpredictability, we should all stay flexible and adaptable – and most of all patient.
Alexandre identifies the extension of payment terms as a significant challenge. As our clients undergo restructuring and asset sales, longer payment cycles are anticipated. The focus, therefore, remains on maintaining a robust financial foundation to support our employees and continue investing in our products.
Staying True to Our Core Values
Through all these changes, Drooms remains committed to its core values of innovation, trust, passion, and excellence. We believe that these principles, along with our dedicated team and loyal clients, will guide us through 2024, no matter the challenges or opportunities that lie ahead.
While 2023 was a year of challenges, it also set the stage for growth and adaptation. We enter 2024 with cautious optimism, ready to embrace the opportunities and tackle the challenges that await us.