M&A Market Overview

In 2023, volume in Brazil M&A activity declined to 1,400 total transactions, representing a 9.3% decrease compared to the same period in 2022. Sectors that were more active included financial / insurance, technology, energy and equipment, and food and beverage. Brazil also experienced declining public offerings in 2023 - IPOs (0) and follow-ons (22) – so M&A activity should be poised to take advantage and show strength in the coming years.

Brazil Transactions Insights - Winter 2024

Private Equity and Venture Capital

In 2023, financial investors invested almost BRL 50 billion (bn) in Brazil, and VCs significantly outperformed PE investment. In 2023, financial sponsors were present in 33.2% of the transactions, with investments of BRL 98.2 bn.

Equities Activity

Activities in the capital market in 2023 remained at the same level as 2022, with only 22 follow-ons totaling BRL 32 bn. Since January 2022, Brazil capital markets has had no IPOs. The inflation in Brazil (measured by the Índice de Preços ao Consumidor Amplo [IPCA]) reached an accumulated 4.62% in 2023. Brazil’s Central Bank (BACEN) started a review, and the country’s basic interest rate (named SELIC) was reviewed to 11.75% on December 31, 2023, after sitting at 13.75% since the end of 2022. Market expectations are 9.0% by end of 2024. Fitch Ratings confirmed Brazil's sovereign rating at “BB,” with a stable outlook.

Mergers and Acquisitions (M&A) Advisory

Kroll’s investment banking practice has extensive experience in M&A deal strategy and structuring, capital raising, transaction advisory services and financial sponsor coverage.

Transaction Advisory Services

Kroll’s Transaction Advisory Services platform offers corporate and financial investors with deep accounting and technical expertise, commercial knowledge, industry insight and seamless analytical services throughout the deal continuum.

Fairness and Solvency Opinions

Duff & Phelps Opinions is a global leader in Fairness Opinions and Special Committee Advisory, ranking #1 for total number of fairness opinions in the U.S., EMEA (Europe, the Middle East and Africa), Australia and Globally in 2023 according to LSEG (FKA Refinitiv).

Private Capital Markets – Debt Advisory

Kroll has extensive experience raising capital for middle-market companies to support a wide range of transactions.

Corporate Finance and Restructuring

M&A advisory, restructuring and insolvency, debt advisory, strategic alternatives, transaction diligence and independent financial opinions.