Ivan Yurchenko touches upon the issue of assets exchange amidst liquidity crisis
16/04/2009
On April 15, 2009 “Setting up transactions that invole the puchase of problem assets” conference sponsored by The Financial Analysts’ Service was held in Kyiv.
Event participants identified particular industries that are attractive for investments in the period of economic turmoil along with the core problems faced by investors in Ukraine. They also shared their opinion on how Ukrainian companies can overcome the crisis and discussed potential sources of financing problem assets. A separate set of issues was dedicated to the specifics of problem assets transactions: conducting due diligence, evaluating problem assets, accounting of target’s debts, and the nuances of structuring such transactions.
Mr. Ivan Yurchenko, senior associate with Vasil Kisil & Partners, covered legal aspects of exchanging assets /shares as one of the trends on the M&A market amidst liquidity crisis. “Exchange of assets in one industry enables to increase a market share of the business and gain competitive advantages. In order to have the most effective results possible from an assets exchange, partners should have common points where their business interests meet and conduct a careful analysis of how they view their joint activities in order to achieve clear understanding of all the nuances of this future cooperation,” - Mr. Yurchenko pointed out in his speech. Ivan especially emphasized a number of issues related to structuring asset exchange transactions and the specifics of entering into asset co-management agreements. Moreover, he also addressed such issues as antimonopoly regulation, mandatory due diligence and expert evaluation of assets and protections of foreign investments.
Event participants identified particular industries that are attractive for investments in the period of economic turmoil along with the core problems faced by investors in Ukraine. They also shared their opinion on how Ukrainian companies can overcome the crisis and discussed potential sources of financing problem assets. A separate set of issues was dedicated to the specifics of problem assets transactions: conducting due diligence, evaluating problem assets, accounting of target’s debts, and the nuances of structuring such transactions.
Mr. Ivan Yurchenko, senior associate with Vasil Kisil & Partners, covered legal aspects of exchanging assets /shares as one of the trends on the M&A market amidst liquidity crisis. “Exchange of assets in one industry enables to increase a market share of the business and gain competitive advantages. In order to have the most effective results possible from an assets exchange, partners should have common points where their business interests meet and conduct a careful analysis of how they view their joint activities in order to achieve clear understanding of all the nuances of this future cooperation,” - Mr. Yurchenko pointed out in his speech. Ivan especially emphasized a number of issues related to structuring asset exchange transactions and the specifics of entering into asset co-management agreements. Moreover, he also addressed such issues as antimonopoly regulation, mandatory due diligence and expert evaluation of assets and protections of foreign investments.