Over the years, especially since 2020, mergers and acquisitions have consolidated themselves as one of the growth mechanisms most used by companies that, for some reason, identified that the time was right to expand their operations.
The record numbers of M&A transactions registered in Brazil recently – mainly in 2021, as raised by the Brain & Company consultancy report – justify this thesis and show that the advancement of national and international markets have created a favorable scenario for new transactions. But why has this strategy gained more support in companies recently? The following article clears it up for you.
Mergers and Acquisitions in Brazil: companies and growing numbers
To outline a little of this strategic overview of mergers and acquisitions nationwide, it is necessary to understand the scenario of this market on Brazilian soil and list the main reasons that lead companies to resort to this type of transaction.
One of the points that make an organization consider buying another one in full or in part is the desire to increase the reach of its operations and act in a more globalized way. We can cite the example of the DB1 Group – made up of companies in the technology sector – which acquired companies from other countries and today operates in 12 different nations, distributed in more than one continent.
This negotiation that took place in Brazil is just one more among the many M&A operations that made the graphs of this segment rise non-stop. The first half of 2021, with its almost two thousand transactions, is there to prove the thesis that this strategy has proven to be effective.
The desire to add new products to the portfolio and, with this increase in supply, to take the company to other levels is also a component that encourages the search for mergers and acquisitions. To exemplify, it is impossible not to mention the purchase of Mãe Terra by Unilever, which, from then on, guaranteed its passport to the natural and organic food sector.
It is also common for many companies to understand that the time has come to modernize their operations, especially at a time when digital transformation is the mainspring of national and international business. The acquisition of Stelo by Cielo in 2021, with the aim of improving its offer of digital payment services, is an example of this.
An M&A operation also allows an organization to accelerate its growth, after all, it can be much more advantageous to buy or join a consolidated company than to start everything from scratch. In 2021, Itaú aimed to expand its participation in the payroll loan market and, therefore, instead of starting a new process, it preferred to acquire all the shares of Banco BMG, which already had competence in this area.
As you can see, mergers and acquisitions have not become an expansion tool for Brazilian companies for nothing. The possibilities that this market brings are moving the country’s economy and generating even more business opportunities.
Mergers and acquisitions in the world: a global growth
The growth of mergers and acquisitions that marked the Brazilian scene in recent years is a sample of what is happening worldwide: a market that expands all the time.
If at the national level, M&A operations have entered the strategic planning of companies for good, in other countries they have also shown that they have arrived to be part of large international organizations.
In 2021, more than 5 trillion dollars revolved around these transactions worldwide, with the United States leading this ranking, with transactions that exceeded 2 trillion dollars, double compared to the previous year.
The COVID-19 pandemic and the consequent increase in delivery services have also opened the eyes of international companies to the expansion of some of their operations. In 2020, for example, Uber acquired Postmates and entered the food delivery market as Uber Eats for good.
The acquisition of pharmaceutical company Alexion by AstraZeneca also demonstrates this growth strategy based on mergers and acquisitions by world corporations. Through a deal that involved more than 30 billion dollars, the famous pharmaceutical company started to operate in the sector of medicines for rare diseases.
National and international companies should seek M&A specialists
Any organization that considers going through a merger or acquisition based on a strategy of growth and expansion of its business, should resort to companies specialized in M&A so that the best opportunities are mapped and all stages of the transaction occur within the framework.
Operations like this demand time, specificities and processes that must be followed strictly, therefore, the support of those who understand the subject is more than necessary, it is essential.
Even in Brazil, this market is very well served, with world-renowned specialists and several national and international transactions in their luggage, available to businesses that wish to take the next step.
