Video Insights: 2024 M&A Trend Projections in Brazil
In the latest installment of our Trends in Global M&A Video Series, Tom Waslander, Managing Partner at Brasilpar – IMAP Brazil looks at Brazil’s current economic situation following the election of a new left-wing government and the countries growth perspectives for 2024, which are looking positive.
Taking a deep dive into Brazil’s M&A landscape, he pinpoints the key industries expected to see the highest levels of activity this year: Consumer, Infrastructure, Healthcare, and Education.
He also looks at the key factors driving M&A activity:
- Succession – Large population of ageing owners with no family members to take over the business
- Indebted companies– High number of companies still feeling the aftermath of COVID will create a significant market for distressed M&A
- Private Equity – PE has been a dominant force for last 15-20 years in Brazil – and both domestic and large global players are present in the market
- Interest rates – Unlike in other economies, the interest rate in Brazil is falling. Company values are increasing as discount rates on deals go down, making it more attractive for owners to sell