Global M&A Trends Report |
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Brazil |
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(Latin America/Caribbean)
Firm
Demarest Advogados
Contributors
Joao De Almeida |
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| With respect to private M&A, what are three things on top of mind for M&A practitioners in your jurisdiction? | A few things top of mind for private M&A practitioners in Brazil are:
The above are usually the main concerns in M&A in Brazil. The economy has been a challenge in the last few years for new investors, especially the ones that do not know Brazil. The valuation expectation is another important aspect as results tend to vary significantly in Brazil due to different reasons and challenges of the market. Depending on the industry, merger control is also extremely important and will determine whether a deal can go on or not. Finally, legal due diligence is a key aspect due to hidden exposures target companies may bring to the table. |
| With respect to private M&A, where does your jurisdiction see most deal activity? | Most private M&A deal activity is categorized as mid-market. |
| With respect to private M&A, what sector sees the most deal activity in your jurisdiction? | Most private M&A deal activity is seen in the Energy and Consumer sectors. |
| What are your predictions for private M&A deal volume in your jurisdiction during 2024? | Private M&A deal volume in 2024 is predicted to be greater than 2023 deal activity. 2023 was the first year of a new Government and there was a global crisis affecting the availability of funds. With lower interest and inflation rates around the world, we expect the M&A market to be more active this year and the capital market to open for IPOs and more debt issuances. |
| With respect to public M&A, what are three things on top of mind for M&A practitioners in your jurisdiction? | A few things top of mind for public M&A practitioners are:
Although public companies would bring a higher level of governance and disclosure, these would be key items in Brazil. It is usual to have full due diligence in public M&As as well. |
| With respect to public M&A, where does your jurisdiction see most deal activity? | Most public M&A deal activity is categorized as top-tier. |
| With respect to public M&A, what sector sees the most deal activity in your jurisdiction? | Most public M&A deal activity is seen in the Energy and Consumer sectors. |
| What are your predictions for public M&A deal volume in your jurisdiction during 2024? | Public M&A deal volume in 2024 is predicted to be greater than 2023 deal activity for the same reasons predicted in private M&A deal volume, plus the fact that certain public companies are already entertaining sale processes. |
| Please share any other insights with respect to M&A in your jurisdiction: | Brazil responds to half of the entire volume of M&A transactions in Latin America and we expect this to be a great year. M&A in Brazil involves certain challenges due to the Brazilian economy, complex taxation, labor exposures, and local commercial practices among other aspects. We tend to see more successful results when investors have good local advisors and structure the investments with local partners or with a Brazilian experienced management. |
Global M&A Trends Report
Brazil
(Latin America/Caribbean) Firm Demarest AdvogadosContributors Joao De Almeida Paulo Rocha
Updated 30 Jan 2024A few things top of mind for private M&A practitioners in Brazil are:
- General: economic environment
- Commercial: valuation expectation gaps
- Legal/general: legal due diligence
- Regulatory: antitrust
The above are usually the main concerns in M&A in Brazil. The economy has been a challenge in the last few years for new investors, especially the ones that do not know Brazil. The valuation expectation is another important aspect as results tend to vary significantly in Brazil due to different reasons and challenges of the market. Depending on the industry, merger control is also extremely important and will determine whether a deal can go on or not. Finally, legal due diligence is a key aspect due to hidden exposures target companies may bring to the table.
Most private M&A deal activity is categorized as mid-market.
Most private M&A deal activity is seen in the Energy and Consumer sectors.
Private M&A deal volume in 2024 is predicted to be greater than 2023 deal activity. 2023 was the first year of a new Government and there was a global crisis affecting the availability of funds. With lower interest and inflation rates around the world, we expect the M&A market to be more active this year and the capital market to open for IPOs and more debt issuances.
A few things top of mind for public M&A practitioners are:
- General: economic environment
- Commercial: valuation expectation gaps
- Legal/general: legal due diligence
- Regulatory: antitrust
Although public companies would bring a higher level of governance and disclosure, these would be key items in Brazil. It is usual to have full due diligence in public M&As as well.
Most public M&A deal activity is categorized as top-tier.
Most public M&A deal activity is seen in the Energy and Consumer sectors.
Public M&A deal volume in 2024 is predicted to be greater than 2023 deal activity for the same reasons predicted in private M&A deal volume, plus the fact that certain public companies are already entertaining sale processes.
Brazil responds to half of the entire volume of M&A transactions in Latin America and we expect this to be a great year. M&A in Brazil involves certain challenges due to the Brazilian economy, complex taxation, labor exposures, and local commercial practices among other aspects. We tend to see more successful results when investors have good local advisors and structure the investments with local partners or with a Brazilian experienced management.