Latin Finance - January/February 2011 - 54
brazil m&a
Valuations Up, Fees Fall
by Taina Rosa
B
razilian M&A is expected to shatter the volume record set in 2007. Valuations in some of the frothier sectors are close to double where they were just a few years ago, but advisors are not seeing the benefit. Still, advisors say they are having no trouble filling their pipelines. And while valuations have risen significantly, the factors pushing them up show no sign of abating in the next several years. New market participants such as global private equity firms and national champions, alongside cheap access to capital, will continue to fuel M&A in the coming years, according to market observers. “M&A will be more active in 2011. The number of transactions will increase
Brazil is on track for record-breaking M&A volume and sky-high valuations this year, but advisory fees are lagging. Brazilian firms will keep shopping abroad.
and as the Brazilian economy continues to perform we will see more companies using M&A as a strategy for growth,” Marco Gonçalves, head of M&A at São Paulobased BTG Pactual, tells LatinFinance. A study by KPMG shows that between January and September last year there were 531 M&A deals involving Brazilian companies, 180 of them taking place in the third quarter alone. “If this pace is maintained, the number of M&A deals will surpass the figures of the last recordbreaking year, 2007, when 699 deals were recorded,” according to the firm. In 2009, a total of 347 deals took place, KPMG says. In order to surpass the record set in 2007, 169 more deals will have to take place by the end of 2010, KPMG says, adding that this is a lower figure than what was achieved in the previous two quarters. According to Dealogic, as of November 24, the number of announced M&A deals in Brazil had already surpassed full-year
Brazil M&A Revenue
Top 10 banks take a smaller piece of the pie 2010 Year to November 24 Rank 1 2 3 4 5 6 7 8 9 10 Bank Deutsche Bank Credit Suisse BTG Pactual Itaú JPMorgan Rothschild Bradesco Goldman Sachs BofA Merrill Santander Subtotal Total
Source: Dealogic
2009 Year to November 24 %share 12.30 12.30 11.30 11.00 10.60 6.90 4.30 3.80 3.70 3.70 79.80 100.00 Rank 1 2 3 4 5 6 7 8 9 10 Bank Credit Suisse Morgan Stanley JPMorgan Itaú Bradesco Rothschild BofA Merrill Citi Goldman Sachs UBS Subtotal Total Net Revenue ($m) 64 47 34 29 26 24 22 19 14 13 292 348 %share 18.50 13.50 9.90 8.40 7.40 6.90 6.30 5.40 4.00 3.80 84.10 100.00
Net Revenue ($m) 45 44 41 40 38 25 16 14 13 13 289 362
54 LatinFinance
January/February 2011
Latin Finance - January/February 2011
Table of Contents for the Digital Edition of Latin Finance - January/February 2011
Latin Finance - January/february 2011
Contents
Local Currency Investment
Deals of the Year
Best Investment Bank
Best Bond House
Best Sovereign Issuer
Best Corporate Issuer
Best Local Currency Financing
Best Cross-Border m&a
Best Project Finance
Best Law Firms
Televisa m&a Strategy
Grupo Mexico Interview
Uruguay
Latin Finance - January/February 2011 - Latin Finance - January/february 2011
Latin Finance - January/February 2011 - Cover2
Latin Finance - January/February 2011 - 1
Latin Finance - January/February 2011 - Contents
Latin Finance - January/February 2011 - 3
Latin Finance - January/February 2011 - 4
Latin Finance - January/February 2011 - 5
Latin Finance - January/February 2011 - 6
Latin Finance - January/February 2011 - 7
Latin Finance - January/February 2011 - 8
Latin Finance - January/February 2011 - 9
Latin Finance - January/February 2011 - 10
Latin Finance - January/February 2011 - 11
Latin Finance - January/February 2011 - 12
Latin Finance - January/February 2011 - 13
Latin Finance - January/February 2011 - Local Currency Investment
Latin Finance - January/February 2011 - 15
Latin Finance - January/February 2011 - 16
Latin Finance - January/February 2011 - 17
Latin Finance - January/February 2011 - 18
Latin Finance - January/February 2011 - 19
Latin Finance - January/February 2011 - 20
Latin Finance - January/February 2011 - 21
Latin Finance - January/February 2011 - 22
Latin Finance - January/February 2011 - 23
Latin Finance - January/February 2011 - Deals of the Year
Latin Finance - January/February 2011 - 25
Latin Finance - January/February 2011 - Best Investment Bank
Latin Finance - January/February 2011 - 27
Latin Finance - January/February 2011 - 28
Latin Finance - January/February 2011 - 29
Latin Finance - January/February 2011 - Best Bond House
Latin Finance - January/February 2011 - 31
Latin Finance - January/February 2011 - Best Sovereign Issuer
Latin Finance - January/February 2011 - 33
Latin Finance - January/February 2011 - Best Corporate Issuer
Latin Finance - January/February 2011 - 35
Latin Finance - January/February 2011 - 36
Latin Finance - January/February 2011 - 37
Latin Finance - January/February 2011 - 38
Latin Finance - January/February 2011 - 39
Latin Finance - January/February 2011 - Best Local Currency Financing
Latin Finance - January/February 2011 - 41
Latin Finance - January/February 2011 - 42
Latin Finance - January/February 2011 - 43
Latin Finance - January/February 2011 - Best Cross-Border m&a
Latin Finance - January/February 2011 - 45
Latin Finance - January/February 2011 - 46
Latin Finance - January/February 2011 - Best Project Finance
Latin Finance - January/February 2011 - 48
Latin Finance - January/February 2011 - 49
Latin Finance - January/February 2011 - Best Law Firms
Latin Finance - January/February 2011 - 51
Latin Finance - January/February 2011 - 52
Latin Finance - January/February 2011 - 53
Latin Finance - January/February 2011 - 54
Latin Finance - January/February 2011 - 55
Latin Finance - January/February 2011 - Televisa m&a Strategy
Latin Finance - January/February 2011 - 57
Latin Finance - January/February 2011 - 58
Latin Finance - January/February 2011 - 59
Latin Finance - January/February 2011 - 60
Latin Finance - January/February 2011 - Grupo Mexico Interview
Latin Finance - January/February 2011 - 62
Latin Finance - January/February 2011 - 63
Latin Finance - January/February 2011 - Uruguay
Latin Finance - January/February 2011 - Cover3
Latin Finance - January/February 2011 - Cover4
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