Selling Your Business Beyond Our Borders…Brazilian Opportunities Abound

Selling Your Business Beyond Our Borders…Brazilian Opportunities Abound

By Eduardo Berdegué

July 05, 2011

Brazil MapBrazil continues to be a magnet for investment. Over five times as much capital found its way to the South American dynamo from January to April of this year as in the same period last year. Private equity and buy-out groups are setting up shop in the country, led by the likes of Carlyle, Blackstone, Advent International, KKR, and TPG, formerly Texas Pacific Group. While $8.1 billion were raised last year for investment in Latin America, companies are expected to raise over $10 billion for investment in Brazil alone this year.

A total 693 M&A transactions worth over $120 billion were announced in the country during 2010, according to Thomson Reuters. Some of the most notable transactions were in the energy, financial, telecommunications, commercial airlines, fast food, travel and education sectors.

At the same time, with Brazil’s currency, the Real, at a 12-year high against the dollar, some Brazilian conglomerates will continue to seek opportunities in the US to establish or expand their strategic presence here for when this market rebounds. Likely areas of activity may be in banking, food & beverage, business services & solutions, technology, and aeronautics, among others.

So whether you see yourself and your company as a buyer or as a seller, Brazil offers tremendous opportunities that you should seek assistance to better sort out. As with any cross border transaction, in addition to the standard legal, financial, operations, tax, logistics, and other aspects relevant to any domestic deal, a cross cultural dimension needs to be added to the equation, which, if not properly addressed, may irreparably hinder an otherwise viable and desirable transaction. So, talk to your CFA investment banker partner today and explore your options beyond the borders.

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Posted by Eduardo Berdegué.