According to the Transactional Track Record (TTR), the number of mergers and acquisitions to date represented a 10% drop compared to 2021.
A total of 1,699 transactions have been recorded, 505 in the third quarter alone, adding up to a total of $63.9 billion.
Of the total transactions, 47% have their values disclosed and 77% are already completed.
The Internet, Software & IT Services sector was the most active during the period, with a total of 347 transactions, representing a 26% decrease compared to the same period in 2021.
In second place is the industry-specific Software sector, with 247 transactions.
João Busin (pictured left), partner responsible for the Private Equity and Venture Capital area, and Fernando Silveira Carvalho (pictured right), partner specialized in M&A and Private Equity & Venture Capital, at TozziniFreire Advogados talked to TTR and analyzed the most relevant factors for the consolidation of the M&A market in Brazil in the fourth quarter of 2022: “For the last quarter of the year, our expectation is for a volume of deals maybe a little lower than the first two quarters, but already showing an acceleration compared to the third quarter. The market presents good opportunities for investors and sellers who have been waiting for some stabilizing factors to make their decisions.
In this sense, the clarity that should come after the elections will certainly contribute a lot. Moreover, even with the global increase in inflation and the scenario of reduced operating margins and high capital costs, we still do not have good availability of liquidity in the market (either by financial or strategic investors – the latter with good funds raised in the last IPO window).