Brazil´s M&A scenario

A comprehensive M&A report provided by TTR (Transaction Track Record database) reveals that the United States ranks first for inbound acquisitions in Brazil. There were 108 acquisitions completed by US companies in 2018, totaling almost US$ 8 Billion dollars. The deals concentrate in Information Technology (22 deals), Financial and Insurance (16), Internet (15), Healthcare (15), Distribution and Retail (12), Oil and Gas (10), and in other acquisitions in relevant sectors such as Agriculture, Chemical, Transport, Consultancy and Engineering.


In a report entitled “Latin America’s missing middle of midsize firms and middle-class spending power”, on May 2019, McKinsey presents an important overview about Emerging Markets dynamics, focusing specifically on Brazil, Mexico and Colombia. More here.


One of the main drivers of GDP growth in the region has been the expansion of the labor force, as a result of the demographic boom. Brazil is a large consumer market, the 9 th world’s largest economy, with a population of around 210 million people, and although many are still vulnerable, there is a repressed consumer market with high potential.


In Latin America smaller companies employs a large contingency of the population, with an elevated degree of informality and productivity issues to be addressed. The challenge is to improve this environment and offer ways to them to be more competitive and by consequence empowering the labor force with better compensation, boosting domestic demand and developing the consumer market.


Find more information here.


Posted by Daniel Rivera.