Marked by an intense volatility of both economic-political worldwide and Brazilian scenarios (north American elections and Brexit), the year 2016 presented a fall of 21% in mergers and acquisitions among companies in Brazil between January and October. Political uncertainties have also contributed to the decision made by some companies to remain waiting to accomplish major movements over the last year.
The potential resumption of confidence, boosted by the recent decrease in inflation and interest rate that has taken place, tends to contribute to a better outlook for the economic activity over the year of 2017. Therefore, the current scenario, combined with this perspective, presents itself as a great opportunity for the acquisition of assets (companies, products portfolios, sale strength, and so on) whose prices are likely to remain below those during a period of economic growth and capital abundance. Some companies are one step ahead in this matter. Effective in their management, composed of adequate capital structure and investment capacity, they are prepared to accomplish strategic acquisitions, aiming for a vanguard position in the upcoming recovery period.
For the entrepreneurs, as an activity prior to a strategic move, it is necessary to design and define the main idea of the transaction. This main idea, of course, must comply with both the strategy and understandings of the company. Therefore, it must be understood where the company aims to move inside its (1) value chain. Combined with that understanding, it is also necessary to look within the company and understand which abilities and resources must be better developed, in order to achieve the strategy for the medium-long term timescales of the company. If it is not possible do develop them in an organic form, the next step is to evaluate the development of this object in an inorganic way, be it via (a) market gain, (b) new technology acquisition and/or (c) valuable human resources for the organization.
Imeri has advised and concluded transactions of active purchases (buy-side), achieving the goals expected by its clients. We are able to advise entrepreneurs of every sector before and during the implementation of the acquisition, ensuring that the transaction is a success from beginning to end. If you are interested in talking about acquisitions, please contact Imeri.