Buying business in Ukraine: what, where, and how much?

...You need to know about the real situation at the market of the working business in Ukraine.

What`s for sale?

According to data of marketing research, conducted by the specialists of InterCredit company on own database information, up to 31% working business, offered presently for sale consists of trade enterprises. Above all there are food shops, pharmacies and shops, offering the the manufactured goods, and also books, CDs and spare parts for the computer technique.

It follows by the less numerous (20,7%) group of small and middle-size enterprises, specialized on food production, building materials, furniture and... biopropellants, so popular in Ukraine last time.

The third place for amount (17,3%) have been occupied by sale propositions of hotels and small rest-houses, on a fourth place (10,3%) are domestic services. Hardly yield to them in number (10,2%) internet-shops and specialized B2B and the other e-commerce sites. Agencies and firms, whose activity is related to the publishing, advertising and even tо the... extractive industry locks the list— near the 3,5% each.

Where`s for sale?

The main part (up to the 27,5%) business is for sale in Kiev and the Kiev region. That isn`t surprising, of course, taking in account the volume and specific of investments distributing (above all — foreign investments) geography, which did not change very much from the beginning of 1990th.

South and South-east of Ukraine follows — with up to 24,15% each accordingly, thus if trade and recreation sale objects prevail in the Sonth regions, in industrial south-east traditionally is strongly presented by the production constituent of small- and middle-size business.

Оn the West of Ukraine is concentrated up to 13,8% of all business-objects offered for sale and the last place are occupied by the central Ukrainian regions — 10,4% suggestions.

What`s a price?

Appropriately, that closeness to the capital – Kiev – increases costs of small and middle business enterprises in a natural order. So, if small business object (like a small grocery or repairing autoparts shop) in the Kiev region now costs near 80-100 thousands dollars – as a start price, an analogical on the other indexes enterprise in the Winnitca could be bought only for 15-25 thousands doll.

The highest prices are fixed for the large recreation bases in Crimea (for example, recreation complex in Nikolajevka — 13 750 000$). Mini-hotels and family type resort houses in the Sonth and Western regions are approximately in one start price category: Sudak (Crimea) — 1 250 000$, Kirillovka (Azov Sea) — 1 600 000$, Truskavets — 2 000 000$.

A small food production factory could be purchased, on the average, for 200 thousands doll., while for the large factory of the same industry could be asked up to 5 - 8 million doll. The small light industry and furniture enterprises are presented sufficiently wide for an average price up to $250 000 and $165 000 accordingly.

Very perspective in Ukraine business – direction (especially after the recent prime minister`s promise about the 10-years tax vacations) is production of biodiesel fuel — offered at higer price, on average, for 750 thousands doll.

Domestic services business (dry-cleaning, laundry) costs, on average, up to $100 000. By the way, presently often enough could be met sale propositions of 1-1,5 years enterprises, which were founded specially for sale (for example — a pharmacy in one town in Sumy region have been proposed for 8 thousands doll., a network of pharmacies in few towns of Cherkassy region costs 120 thousands doll. and vise versa.

Enterprises, just developing in Ukraine (web, mobile and the other innovative technologies) have been established in very wide price spectrum – from $6 000 till $2 000 000 per object. Thus big companies are preferably interested in strategic investor, than in the complete sale of the enterprises. That`s fully explainable from point of undoubted prospects of similar business types in a post-crisis period.

So, already today the potential investor has a wide enough choice for his free money, which have to work. It remains only to weigh up carefully all the pro- and contra, making decision for a purchase, taking into account not only the coincidence of desires and possibilities for now but also possibilities for production development in the near future.