BUYERS BECOME MORE DEMANDING WITH RESPECT TO POTENTIAL TARGETS, AVELLUM’S SURVEY REVEALS

Publications

BUYERS BECOME MORE DEMANDING WITH RESPECT TO POTENTIAL TARGETS, AVELLUM’S SURVEY REVEALS

AVELLUM for the second time researched how the coronavirus outbreak affected the plans of businesses to purchase or sell assets or companies in Ukraine in the next 6 to 12 months. We surveyed over 90 owners, top managers, and heads of legal departments of Ukrainian and international companies in 2021.

Key findings from the report

  • In 2021, the share of companies intending to buy a business decreased from 50% to 37%. The percentage of companies planning to sell the business has not significantly changed (30%).
  • The number of companies planning to sell businesses due to the coronavirus has doubled (38% vs 18% in 2020). 50% of potential buyers are interested in buying specifically because of the pandemic. Sellers and buyers are taking the pandemic more seriously as an impact factor in M&A transactions.
  • Buyers are more demanding with respect to potential targets. They prefer comprehensive warranties as to the target (62%) and its full-scope due diligence (86%). There is a clear tendency towards creating conditions for the buyer’s market. 
  • 70% of respondents defined the current situation in Ukraine as satisfactory for buying or selling a business. One third believe that the current situation in Ukraine is favourable, and only 11% of the respondents view it as unfavourable for such transactions.
  • Sellers and buyers are unwilling to take risks in times of crisis. In 2021, the share of companies that believe that both parties need external advisors has nearly tripled (from 32% in 2020 to 85%). 
  • As in 2020, more than half of the companies for sale (60%) are willing to offer a discount due to the crisis. At the same time, the share of buyers expecting a discount has decreased from 94% to 56%. Now it almost matches sellers’ plans to offer a discount.

Please SEE THE FULL REPORT for more information and findings.

We will be happy to continue our communication and answer your questions. Please feel free to contact our partners, Mykola Stetsenko and Yuriy Nechayev, counsel Andriy Romanchuk, or send an e-mail to info@avellum.com to share fеedback or ask questions.

Posted on December 7, 2021

AVELLUM’s year of invincibility

It’s been a tremendously important and obviously the most critical year for our country after 24 February 2022, when russia started its unprovoked and unjustified military aggression against Ukraine. Although the russian invasion made our activities quite challenging, we are fully operational and looking forward to restoring our business and the Ukrainian economy. Despite the […]

Posted on March 24, 2023

AVELLUM successful for the client before the High Anticorruption Court

AVELLUM defended the client, a Member of Parliament of Ukraine of the 9th convocation, being also a Lieutenant General of Ukrainian Armed Forces, in the criminal case heard by the High Anticorruption Court

Posted on March 15, 2023
Subscribe to our Newsletter
Back
Search results: