The value of M&A transactions in Ukraine has fallen by 96% due to the war.

The M&A sector in 2022 has become a disaster, according to a study by the Kyiv School of Economics (KSE). At the beginning of 2022, 39 such deals were planned. In 33 cases, the buyers were Ukrainian companies, and 35 deals related to Ukrainian assets. In 30 cases, the deals were completely internal – Ukrainian legal entities bought Ukrainian companies.

There was practically no foreign investment in the market. The average value of these deals was €1.29M, which is 96% less than the figures from 2000-2014, with an average deal size of €33M.

Following the invasion, Ukrainian assets were acquired by the following countries: Cyprus, Germany, Hong Kong, and the Netherlands. As well, Ukrainian companies bought objects abroad in another four cases: two in Cyprus and two in Great Britain.

“Despite the current situation, we expect a post-war boom in M&A activity. Investors can now profit from cheap deals because the average value has fallen sharply to €1.2M,” KSE commented.