Emerging & Frontier Markets Insights

The buyer of a business wants to ensure that no major material issue will arise after merger transaction takes place. Therefore the buyer will insist on a thorough due diligence process in order to know about any such issues and to negotiate with the seller on better terms before completing any merger or acquisition. Due diligence process is conducted to determine the value of the target company, structure the deal, and identify any problems. The target’s business operations, financials, and legal documentation should be thoroughly examined.

The most noteworthy deals in Ukraine in 2016 are presented in the following infographic.

The purpose of this section is to introduce reader to the main stages in the Mergers and Acquisitions (M&A) process from beginning to end. As a rule, an M&A transaction is complicated process, which may take months, or even years to finalize. The end of the M&A process certainly continues after the final signing of agreements since acquired or merged companies should be properly integrated.

M&A Process - Preparing to Sell or Buy

Both seller and buyer should prepare before selling or buying a business. The Seller must make his/her company look as attractive as possible to the Buyer; while the Buyer must do some work to determine the proper selection criteria for the company. Presale preparations include such main items as:

The total amount of M&A deals in Ukraine constituted not more than USD 2 bln according to preliminary results, which is 3 times less than in 2013.

The biggest M&A deal in the Ukrainian market was the sale of network of 240 gas stations and 6 oil plants on the balance of affiliate company LUKOIL-Ukraine by the Russian company LUKOIL to the Austrian AMIC Energy Management for USD 300 mln.