In 2019, the so-called M&As (mergers and acquisitions) hit a record in Brazil, and the expectation was that, in 2020 alone, such operations would reach 1,350. However, during the COVID-19 pandemic, the great majority of potential M&A operations remained suspended, gradually resuming from the second half of the year, both as a solution for some companies to maintain their operations; and for others, well capitalized, to take advantage of acquisition opportunities at lower prices, expanding their lines of business and increasing their market shares.

As 2021 begins, even with the US, Europe and Latin America facing the second (or third) wave of contaminations with new lockdown announcements, the M&A forecast is optimistic again. The number of transactions has increased, and the trend is that it will continue to grow, especially after the announcement of coronavirus vaccines with acceptable efficacy rates in the final process to be approved or already in emergency use.

In Brazil, this global context allows the market to remain optimistic about M&As for 2021. The time is ripe for investments in companies seeking alternatives during the crisis, with potential for revenue recovery in the medium term.

Read the full paper from Denise Debiasi.