Mergers and Acquisitions Advisory in Brazil

Mergers and Acquisitions is an area that requires extreme knowledge in finance, law, business skills and persuasion techniques to demonstrate to stakeholders the benefits of each side of the business. The depth in the study of these mutual advantages allows the parties to decide more safely and pass more quickly through the early stages of the negotiation process.

Mergers and Acquisitions are the result of strategic decisions that take into account a medium / long-term universe and should never be the result of short-term business situations. Every asset needs to be always in the best position to be bought and to reach its best market value.

Some of the Country’s main competitive advantages are:

• » Leading regional economy
• » Solid investment framework
• » Huge domestic market
• » Global player
• » Innovative hotbed
• » Major infrastructure projects
• » Energy and Agricultural powerhouse
• » Gateway to Latin America
• » Biggest and most diversified science, technology and innovation system of Latin America
• » One of the largest producers and exporters of agricultural products
• » Competitive differential in the sector of aircraft building
• » Competitive differential in the sector of oil exploration in depth water and large offshore oil fields

Brazil is also working to improve its competitiveness and productivity, adopting measures to improve business conditions.

Invesment in Brazil needs to be preceded by preterit, present and future profitability studies, and of the type of investment investor want to do. We need to know the degree of risk that the investor accepted and the type of investment he is looking for. We can assist in the search for investments in real estate (industrial, housing and leisure), and industrial services (mergers and acquisitions, associations or joint ventures), or seach for a particular type of investment.

DIAGNÓSTIC:

• » Know the business
• » Identify strengths and weaknesses
• » Draw up a Confidentiality Agreement (NDA) to be presented to investors
• » Prepare summary presentation (Teaser) that will be the first material to be presented to investors
• » Elaborate complete presentation (Book) to be delivered to investors with effective interest

PREPARATION:

• » In view of weaknesses identified in the DIAGNOSTIC phase, perform corrective actions or risk management
• » Perform Due Due Diligence
• » Prepare the documentation that will be requested in due diligence (Data room)

VALUATION:

• » Develop scenario simulation tool
• » Determine the value of the business
• » Elaboration of the technical evaluation report
• » Define the target value of the negotiation

PROSPECTION:

• » List possible stakeholders
• » Rank the potential stakeholders
• » Contact potential stakeholders
• » Company presentation
• » Get the Letter of Interest

DUE DILIGENCE (When Due Diligence is not contracted by the investor):

• » Act as a link between the DD and the Company
• » Provide the requested information
• » Provide clarification

NEGOTIATION/CLOSING:

• » Plan the best way
• » Assess tax effects
• » Participate in the negotiations
• » Elaborate the set of contracts in partnership with the advice of the investor
• » Closing the transaction