The full-scale war unleashed by Russia continues to cause significant economic damage, and if in 2022 the owners of Ukrainian businesses were not yet ready to sell their assets at a reasonable price, then in 2023 it is more likely, the head of one of the leading investment companies in the Ukrainian market Concorde Capital, Ihor Mazepa, believes.
"Many businessmen and private companies are facing a big, huge problem of lack of working capital - firstly, and secondly, with incomprehensible, ghostly, vague prospects of what will happen next with the business environment, with companies, markets. I think that these factors will push many of our businessmen, unfortunately, to probably think about exiting assets in Ukraine," he told.
"In this sense, for us, buyers, 2023 and, to some extent, 2024 may be some kind of opportunity," Mazepa said on the sidelines of a business forum on Ukraine Fast Recovery in Luxembourg, organized by the Ukrainian-Luxembourg Business Club.
According to him, the matter concerns such an opportunity for any buyers who take the risk of entering Ukraine before the end of the war, "with incomprehensible, cloudy prospects, of course, for a reasonable price."
Investment opportunities in Ukraine
Speaking about the price, Mazepa suggested that for a professional investor, members of the investment committee who perform a fiduciary function, weighing different scenarios for the end of the war - from optimistic to super-pessimistic, a discount to the pre-war price can be estimated in the range of 50-75%.
"The same will be said by people who sit on the supervisory boards of Western or global companies that operate in their markets. Weighing all possible development scenarios, they will come to the same opinion or recommendation that the discount should be significant, unfortunately," the investment banker stated.
He noted that as of now, few people are ready to agree to such discounts.
"But, again, so far I don’t see an improvement in the business climate, an improvement in the ability of the government and economic authorities to administer the country correctly, transparently, without corruption. This, of course, does not add optimism and, probably, the further this situation continues, the more sellers and current auctioneers will still be inclined to think about exiting, even with a significant shareholder discount, which actually reflects reality," Mazepa stated.
