Almost 30% of companies plan to sell their business or their assets in the next six months to a year, while only one in five will do this because of the crisis, according to a survey of 56 companies conducted by Avellum law firm.
“This shows that most large Ukrainian companies have relatively successfully withstood the economic crisis associated with COVID-19,” the study says.
Moreover, more than 60% of companies plan the sale and are ready to lower prices.
“However, in the future, sellers may increase prices for objects of sale, because today the number of potential buyers significantly exceeds the offer,” the authors of the study note.
Some 50% of the representatives of large business polled are ready to buy companies or assets. All of them noted that they expect a discount in price, since weak businesses are usually put up for sale. At the same time, more than 40% of likely buyers are interested in acquiring due to a coronavirus crisis.
“This suggests that a significant part of the companies has opportunistic sentiments and believes in the rise of the Ukrainian economy,” the authors of the study believe.
As the results of the survey showed, more than 60% of potential buyers have not changed their plans to acquire assets in Ukraine, that is, they continue to believe in the attractiveness of the market in this country and see profit in expanding their share in it. The remaining almost 40% refused to buy assets precisely because of the crisis.
The survey also showed that over 60% of companies do not see the need for advisers, since the asset is sold at a discount. This is contrary to the buyers’ expectations regarding guarantees that require the involvement of lawyers.
The survey was conducted online in June 2020 among the owners, top managers and heads of legal departments of Ukrainian and international companies.
