M&A environment in Brazil Perspectives for 2023

Host

Jeff Black

Global Leader M&A Advisory Services, Mercer

The “Delivering the Deal” spotlight series is where Mercer’s leading experts discuss the most pressing issues facing business leaders and deal professionals in M&A today.

Curious about Brazil's M&A environment? In today's episode, we'll focus on the Brazilian deal landscape. Mercer's M&A Leader for Brazil, Renata Andrade, shares her insight into the opportunities and challenges for creating a successful deal in Brazil.

Abundant natural resources

"Brazil has abundant natural resources such as water, oil, and iron ore that can attract foreign investors. Brazil also has a lower company valuation than the developed world."
Continued growth

"The M&A market in Brazil has a moderate yet continued growth. Several factors, such as strategy, acquisition, stabilization, and the recovery of the post-pandemic, global economy, IPOs, and privatization, drive this."
Critical deal factors

"Many companies in Brazil identify talent, availability, and retention as the most critical factor in supporting business strategy."
Possible deal breakers?

"It is very common for companies to hire workers as contractors. Under the deal, they might be considered full-time employed and thus need a post-employment obligation from the buyer."