The Ukrainian market for mergers and acquisitions (M&A), which until recently experienced a shortage of buyers, has been growing for the third year in a row, Serhiy Budkin, the Managing Partner of FinPoint Investment Advisers, has said.
Commenting on the situation on the market within the framework of the Kyiv International Economic Forum, the expert predicted several large transactions in the next 12 months, including in the financial sector, IT and development.
The founder of UFuture Holding, Vasyl Khmelnytsky, at the forum estimated the average multiplier when evaluating Ukrainian companies at about 6. In particular, speaking of the annual sales of his company at $70 million, he estimated its value at about $420 million, although in Europe it could cost $700 million.
Khmelnytsky told Interfax-Ukraine that the multiplier for Ukrainian companies may vary depending on the industry, for example, in medicine – 8, while in manufacturing – 5.
At the same time, the entrepreneur noted that some foreign buyers still expect a lower price and a high return on investment from Ukrainian investments – in 4 years, while the multiplier 6 is about 15% per annum.
Budkin generally agreed with this assessment of the multiplier for Ukrainian companies.
“The multiples have a tendency to increase. The revival [of the M&A market] leads to an increase in the multiplier in itself,” he said.
