Market Insights Financial Corporate Finance

Mergers and Acquisitions - Brazil

Brazil

The transaction value in the Mergers and Acquisitions market is projected to reach €28.41bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -2.85% resulting in a projected total amount of €27.60bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to €134.50m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (€1,260.00bn in 2024).

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Moneda

Analyst Opinion

The Mergers and Acquisitions market in Brazil is experiencing a significant uptrend in activity.

Customer preferences: Companies in Brazil are increasingly looking to M&A deals as a strategic move to expand their market share, diversify their product offerings, and gain a competitive edge in the industry. This trend is driven by the desire to achieve economies of scale, access new technologies, and enter new markets efficiently.

Trends in the market: One notable trend in the Brazilian M&A market is the rise of cross-border transactions, where foreign investors are showing a growing interest in acquiring Brazilian companies. This trend is fueled by Brazil's rich natural resources, large consumer market, and strategic geographic location, making it an attractive investment destination for international players looking to expand their global footprint.

Local special circumstances: Brazil's complex regulatory environment and bureaucratic processes can pose challenges for M&A deals, leading companies to seek specialized legal and financial advice to navigate the intricacies of the local market. Additionally, cultural differences and language barriers can also impact the negotiation process, highlighting the importance of local expertise in facilitating successful M&A transactions in Brazil.

Underlying macroeconomic factors: The economic stability and growth potential of Brazil, coupled with recent government reforms aimed at improving the business environment and attracting foreign investment, have created a favorable climate for M&A activity. Additionally, the recovery of commodity prices and the resilience of key sectors such as agribusiness, energy, and technology are driving increased deal-making in the Brazilian market.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.