News

The information agency "AK&M" summed up the results of the past year on the Russian mergers and acquisitions market. Here are a number of the most interesting indicators from the statistics of purchases and sales of ready-made businesses in Russia:

• the total value of transactions reached 50.5 billion US dollars (an increase of 18.7% by 2022);
• average transaction cost — 94.4 million US dollars;
• the number of transactions exceeding USD 1 million reached 536 (an increase of 4.3% by 2022);
• state-owned companies play a leading role in the M&A market and have bought almost a quarter of businesses in this market (23.8% of the total value);
• 8 transactions on the market exceeded the value of 1 billion US dollars.

More detailed information is contained in the bulletin of the news agency "AK&M" (issue 310).

The Russian Ministry of Finance, together with the Central Bank and BRICS partners, will prepare a number of initiatives to create an independent international monetary and financial system. The result of this work may be, among other things, the creation of a digital settlement and payment platform BRICS Bridge. This is stated in a message on the website of the Ministry of Finance.

A meeting of finance ministers and central bank governors of the BRICS countries took place in Sao Paulo. Russian Finance Minister Anton Siluanov and First Deputy Chairman of the Bank of Russia Vladimir Chistyukhin presented the main directions of work in this area.

"The current system, based on the existing Western financial infrastructure and the use of reserve currencies, has a number of fundamental shortcomings. Such infrastructure must be accessible to everyone," — Siluanov said.

The Russian side is positioning the improvement of the international monetary and financial system as the main theme of its BRICS chairmanship. Based on the results of 2024, the Russian Ministry of Finance and the Bank of Russia, together with the association partners, will prepare a report to the leaders of the BRICS countries on this issue.

Source — TV BRICS

At the beginning of February 2024, at the office of the Representative Office of the Iranian Chamber of Cooperatives in Russia, a partnership agreement was signed between the REAB Consortium and this important Iranian economic organization. On the part of the ICC Representative Office, the document was signed by the director, Mr. Alireza Jafari, and on the part of REAB — Deputy Chairman of the Board of the Consortium Denis Devyatkin.

During the dialogue, both parties expressed the opinion that the partnership between ICC and REAB can create new opportunities for interaction between Iranian and Russian businesses. The Russian Federation and the Islamic Republic of Iran are increasing mutual trade turnover and other forms of economic cooperation. Part of it will be expressed in the format of the acquisition of Iranian businesses by Russian entrepreneurs and vice versa — Russian assets by Iranian business representatives. Facilitation of such international transactions, their search and preparation — one of the activities of the Russian-Eurasian Business Broker (REAB). Already, the Iranian side is ready to offer for consideration several Iranian objects for potential Russian buyers, which will soon appear in our catalog.

Reference: The Iranian Chamber of Cooperatives (ICC), as a non-governmental representative of the cooperative sector at the highest level in national and international forums, plays an important role in enhancing the contribution of the cooperative sector to production, sustainable employment and development of non-oil exports , and is also one of the main pillars in the implementation of the general policy of “resistance economy” in the country.

ICC mission and goals:

1. Help to provide opportunities for growth and development of the country's cooperative sector in the cultural, social and economic spheres;
2. Assistance in improving the business environment in the country;
3. Cooperation for economic growth and development, as well as increasing social justice and reducing inequality in society;
4. Participation and  cooperation in planning the development of the cooperative sector in order to support the middle and lower class of society and create productive employment for the population;
5. Contribution to the implementation of the general policy of Article 44 of the Constitution of the Islamic Republic of Iran;
6. Attracting national and foreign resources and investments, as well as export development;
7. Organizing and coordinating between cooperatives and obtaining feedback from cooperators, as well as helping to create an atmosphere of cooperation when interacting with other sectors of the economy.

Recently, the Eurasian Economic Commission published a report summarizing the activities of the Eurasian Economic Union for 2020-2023.

According to Mikhail Myasnikovich, Chairman of the Board of the Eurasian Economic Commission, economic indicators in the EAEU have improved significantly over the past four years. In 2020–2023, the EAEU GDP increased by 4.1%, reaching $2.2 trillion. Industrial production grew by 8.3% during this period, including in the manufacturing industry by 5.7%. Agricultural production increased by 11.8%. The volume of mutual trade between the EAEU states over the same period increased 1.5 times.

In 2020, Uzbekistan and Cuba received the status of observer states in the EAEU. Eurasian Economic Forums were held in Bishkek, Kyrgyzstan (2022) and Moscow, Russia (2023), and the REAB Consortium also took part in this forum. The total PPP GDP of the EAEU member states in 2022 reached 3.4% of the world, and PPP GDP per capita reached $33.6 thousand.

Note, that in 2023 Russia chaired the Supreme Eurasian Economic Council, the Eurasian Intergovernmental Council and the Council of the Eurasian Economic Commission.

On the first day of 2024, the decision made at the BRICS summit in August 2023 came into effect. According to it, the number of members of this union increased to 10. In addition to Russia, China, India, Brazil and the Republic of South Africa, — Egypt, Iran, UAE, Saudi Arabia and Ethiopia joined the organization from this day. Thus, BRICS includes countries that form the largest and fastest growing market on the planet, and the share of their total GDP in the world economy in 2021 exceeded that of the G7 association.

In the next wave of expansion of the union, such countries as Algeria, Bangladesh, Belarus, Venezuela, Pakistan and others are expected to join it.

Let us recall that the territory of the BRICS countries is included in the geography of activities of the Russian-Eurasian Business Broker (REAB Consortium).

Dear friends, colleagues, partners!

The Russian-Eurasian Business Broker with joy and enthusiasm congratulates you on the upcoming New Year and thanks you for your fruitful work and cooperation over the past year. We believe together with you that the next year will be a time not only of challenges and risks, but also of new opportunities, achievements and successful implementation of our common goals.

Summing up the past year, we can say with confidence: the global economic and political redistribution of the world, which we talked about at the stage of our creation, is today an undoubted and obvious reality, gaining momentum and determining the shape of the long-term future. We are proud to be part of these changes and even one of the instruments for their implementation.

Therefore, we wish both us and you to be in the flow of these changes, to contribute to it with your goals, ambitions and achievements, to develop the businesses acquired with our help, and thereby increase the power of our common new economic geography.

Let our business for the new world be successful! And, of course, prosperity, happiness and good health to everyone!

On December 25, 2023, a full-format agreement was signed in St. Petersburg between the Islamic Republic of Iran and the Eurasian Economic Union on the creation of a free trade zone. This agreement replaces the temporary agreement signed in 2019. The temporary agreement has already made possible to increase mutual trade turnover by 2.5 times (from $2.4 billion in 2019 to $6.2 billion in 2022), although its product coverage was limited to a minimum set agricultural and industrial products.

The now signed Free Trade Agreement between the EAEU and Iran will take trade between our countries to a qualitatively new level. The deal is ambitious — import customs duties will be eliminated on almost 90% of the product range, which accounts for more than 95% of our mutual trade. Over the next 5-7 years, the agreement will allow increasing mutual trade turnover to $18-20 billion.

The growth of trade and economic interaction inevitably entails the development of a business purchase and sale market between the countries participating in the agreement. Therefore, we expect an increase in the interest of entrepreneurs from the EAEU and Iran in acquiring ready-made businesses in each other’s countries, which will require business brokers such as the REAB Consortium.

The conditions for acquiring businesses from owners from unfriendly countries have become tougher again. An analysis of these conditions was published in the magazine "Company Lawyer", No. 12, December 2023, which we recommend studying.

Short list of recommendations:

Determine market value through appraisers from the Ministry of Finance list

The price of the transaction determines whether the Government Commission will give permission to it. For an assessment, you will have to contact expert organizations from the list of the Ministry of Finance. Although the department indicated on its website that this is a list of recommended appraisers, it is now necessary to order research only from them. For the transaction, you will need to obtain a report on the assessment of the market value of shares or shares, as well as an expert opinion on this report. It is prepared by the SRO of which the appraiser is a member. The report must be up to date — he must be no more than six months old at the time the Government Commission considers your application.

Determine the discount from the price and calculate the amount of voluntary contribution to the budget

During negotiations on the price of repurchase of shares or interests, it is necessary to take into account the requirement of the Government Commission on a discount. A seller from an unfriendly country has the right to sell his share in the company for a maximum of 50% of its market value. This value must be determined based on the appraiser's report.

When structuring a deal, it is also important to take into account the additional financial burden in the form of a voluntary contribution to the budget. This fall, officials increased the fee again. Now it does not depend on the size of the discount and in any case is 15% of the market value of assets.

Develop performance indicators for the new management

Before purchasing, you need to involve specialists so that they evaluate the performance indicators for the new owners. It is important for officials that the company continues to make a profit after the transaction. A government commission will evaluate how the new owners plan to manage the company after the transaction.

Agree with the foreign participant how he will receive payment

It is necessary to decide in advance with the foreign participant how he will receive payment for his share in the company. It is important to determine whether he will withdraw funds from the Russian Federation. The choice of option for how a foreign participant can receive money depends on this.

Allow at least 4 months for approval of the transaction

The regulations do not contain a deadline within which the Government Commission is obliged to consider the application. Practice shows that it needs four months or more.

Agree on a transaction with securities if they are accounted for in the account of a foreign depository

Now it is necessary to coordinate with the Government Commission all transactions, the party of which is connected with unfriendly countries and as a result of which ownership of Russian securities arises. Permission will have to be obtained, even if transactions take place in a foreign perimeter.

Note of the REAB Consortium: since the acquisition of a business from an owner from an unfriendly state is becoming an increasingly difficult task, it is obvious that it is necessary to involve not only an appraiser from the list recommended by the Ministry of Finance, but also a professional business broker who will help you go through all the difficult stages of this path.

The REAB consortium (Russian-Eurasian Business Broker) celebrates the first year of its activity. During this time, we managed to get firmly on our feet, launch a functional website with a catalog of lots and a rich information archive, find interesting partners and many useful contacts in the markets for buying and selling businesses in different countries and begin fruitful work with them. The REAB business model has proven its worth.

We hope that the next year of work will bring us even more achievements, interesting acquaintances and significant projects. And our clients have new opportunities to expand their economic geography and enter new promising markets.

At the beginning of October, negotiations between the leadership of the REAB Consortium and representatives of business and government of the United Arab Emirates took place in Dubai. The Arab side expressed great interest in entering the Russian market and acquiring businesses in Russia, in particular in the sphere of telecoms and logistics. In turn, the Emirates are ready to offer promising businesses in the UAE to Russian buyers. The parties agreed to develop fruitful cooperation and work on a number of specific business lots.

On July 27-28, 2023, the second Russia-Africa summit and the economic and humanitarian forum "For Peace, Security and Development" timed to coincide with it were held in St. Petersburg (Russia). The forum was attended by 49 countries, 17 of which were represented by heads of state. The first such event took place in 2019 in Sochi.

The holding of the Forum was a strategically important step towards creating the most favorable conditions for the development of trade and economic relations between the Russian Federation and African countries, and also made it possible to diversify the forms and directions of Russian-African cooperation.

Russian President Vladimir Putin spoke at the plenary session of the forum, and also held a number of meetings with the leaders of African countries who arrived at the summit.

The REAB consortium also took part in the forum, represented by Vladislav Skorokhodov, head of the legal department. In particular, meetings were held and presentations were given to representatives of Egypt, Kenya, Tanzania, Senegal, Mozambique, as well as a number of Russian companies showing an active interest in entering the African market. The REAB consortium confirmed its readiness for cooperation in the market of buying and selling businesses in Russia and friendly countries of Africa, which were united by the forum.

On July 4, the Islamic Republic of Iran officially became a full member of the Shanghai Cooperation Organization. This is stated in the declaration adopted following the SCO online summit in -Delhi.

For the REAB Consortium, this means that new opportunities are opening up for cooperation with Iran, including in the market for buying and selling business between countries. We are ready to assist Russian and Iranian entrepreneurs in their entry into the markets of our states in the form of acquiring ready-made companies or shares in them.