M&A (Mergers & Acquisitions)
M&A (Mergers & Acquisitions): Mergers and Acquisitions are complex business transactions that require highly specialized professionals. These transactions involve the consolidation of companies or their operating units with another company or business organization, or investment funds, necessitating a deep understanding of the intricacies of the market and strategic planning.
TCP Partners advises business owners, shareholders and investment funds on mergers and acquisitions (M&A) in Brazil: full or partial sale of companies, bringing in an investor, and special-situation deals such as the sale of an isolated productive unit (UPI) in a judicial recovery.
How the sale of a company works
- Understanding the business (about 1 week)
- Valuation (about 4 weeks): discounted cash flow, trading and transaction multiples
- Strategy (about 3 weeks): buyer profile and long list
- Marketing the company (about 9 weeks): NDAs, information memorandum, management meetings
- Indicative offers (about 2 weeks)
- Due diligence and closing (about 12 weeks)
The whole process usually takes about 31 weeks (roughly seven months), adding up the six stages; the timing varies by case.
Cross-border reach
TCP is a partner of the BTGGA alliance (300+ offices worldwide), responsible for Brazil and Latin America, connecting Brazilian companies with foreign buyers and foreign investors with deals in Brazil.
Frequently asked questions
What are the stages of an M&A process?
When selling a company, TCP works in six stages: understanding the business, valuation, strategy, marketing the company to interested parties, indicative offers and, finally, due diligence and closing. The valuation takes about 4 weeks; due diligence and closing, about 12.
How long does it take to sell a company in Brazil?
The process usually takes about 31 weeks (roughly seven months), adding up the six stages. The timing depends on how well the company’s information is organized, the number of interested parties, the complexity of the due diligence and approvals such as CADE’s (Brazil’s antitrust authority), when required.
Can TCP reach foreign buyers?
Yes. TCP is a partner of BTGGA, an international alliance with more than 300 offices, and is responsible for covering Brazil and Latin America. This connects Brazilian companies with buyers from other countries and foreign investors with opportunities in Brazil.
