COMPANY VALUATION IN THE CONTEXT OF M&A DEALS IN EUROPE AND UKRAINE:CURRENT STATE AND PROSPECTS

Abstract

B a c k g r o u n d . The article studies company valuation in the context of mergers and acquisitions (M&A) transactions in the European and Ukrainian markets. Particular attention is given to modern valuation methods, particularly purchase price adjustments, earn-outs, and warranty insurance, which help minimize risks and ensure transaction efficiency.

M e t h o d s . Based on the methodology used by CMS. Several approaches were employed to analyze M&A transactions and company valuation within the context of European and Ukrainian markets. One of the key methods is comparative analysis, which allowed for the examination of differences in valuation approaches under various economic and regulatory conditions. The economic-statistical method was used to assess the impact of economic instability and legislative changes on the M&A process in Ukraine. This method helped identify market trends and M&A development prospects by analyzing indicators such as EBIT/EBITDA. Additionally, the financial modeling method was applied, involving a detailed analysis of purchase price adjustment (PPA) mechanisms and earn-outs.

R e s u l t s . The paper examines the impact of these tools on M&A success, their application for process optimization, and their influence on economic stability in contemporary conditions. Modern trends in the European M&A market were analyzed, including the dynamics of deal volume and quantity over recent years. A comparative analysis was conducted, covering statistical data and reports from leading consulting firms such as KPMG and CMS. It was determined that digitalization and innovation are key drivers of M&A transactions in Europe, whereas in Ukraine, economic instability, an underdeveloped capital market, and the impact of military actions remain major challenges. Particular attention was paid to promising industries that, despite the crisis, remain attractive to investors. These include the technology sector, agricultural industry, and consumer goods sector. Due to their flexibility and ability to adapt to wartime conditions, these industries ensure growth and attract international investment.

C o n c l u s i o n s . Ukrainian companies face challenges integrating into international markets through M&A transactions, including risk management, asset protection, and adaptation to new economic realities. The specific characteristics of the Ukrainian M&A market are examined, particularly issues related to economic instability and an underdeveloped capital market that affect company valuation processes. The gradual integration of Ukrainian companies into international markets through M&A deals is noted, along with the specific challenges and opportunities for developing this market in the future. Conclusions are drawn regarding the further prospects of Ukrainian enterprises in the context of M&A transactions, considering the current market situation and the ongoing full scale invasion in Ukraine.