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Revenaz

Global reach

Our headquarters is in Brazil. Our table is not

We run processes with counterparties in the United States, Europe, the Middle East and Asia. The buyer of a Brazilian company is not always in Brazil, and ignoring that costs price

The network

Financial centres positioned by longitude. Revenaz analysis

Completion record · 2017 to 2024

82%

of sell-side mandates

led by the responsible partner reached completion

74%

of buy-side mandates

led by the responsible partner reached completion

Record of the responsible partner between 2017 and 2024, during his time at Âncora Advisory, where he was sole senior partner. The list of transactions behind the figure is available under a confidentiality agreement, on request

Who sits on the other side

Four types of counterparty, and the choice of which to approach always rests with the client. The shortlist comes before any conversation

Private equity funds

Private equity managers with a stated Latin America thesis, in the United States, Europe and Asia. The conversation starts with the fund's thesis, not with the asset

Strategic buyers

Industrial and services groups that acquire to consolidate their position, enter the Brazilian market or gain capabilities that would take years to build

Sovereign wealth funds and institutional capital

Long-horizon vehicles that accept founder retention structures where a traditional fund would not

Family offices

Family capital in Brazil and abroad, with patience on timing and appetite for minority positions

What changes in a transaction with a foreign counterparty

The buyer that pays most is rarely the closest one

In a consolidated sector, the acquirer with the greatest willingness to pay is usually abroad, because it is buying synergies the local buyer already has

Distance creates work, not an obstacle

Due diligence in two languages, a corporate structure that resolves taxation at both ends, and a timetable that respects regulatory approval on each side

Currency is part of the negotiation, not an afterthought

A US dollar price with closing in reais changes the value between signing and payment. Where there is a time lag, the variation must be addressed in the contract

Time zones set the pace of the process

São Paulo and Singapore are eleven hours apart. The due diligence timetable and the negotiation window are designed around that, not in spite of it

The exchange rate between signing and payment

The same dollar price is worth very different amounts in reais

Four to nine months usually pass between signing and closing, awaiting antitrust clearance and conditions precedent. With a price in foreign currency, the seller bears the exchange risk in that interval unless the contract says otherwise

050100150200250300350Value in reais at closing, R$ millionR$4.32−20%216R$4.86−10%243R$5.40Signing rate270R$5.94+10%297R$6.48+20%324
Illustrative: price of US$50 million, exchange rate of R$5.40 at signing. Revenaz analysis

Three time zones, one table

The useful negotiating window is shorter than it looks

Business hours in each centre, 9am to 6pm local time, converted to São Paulo time. The overlap defines when the whole table is awake

11h–15h0h3h6h9h12h15h18h21h24hSão Paulo timeSão PauloNew YorkLondonDubaiSingapore
Standard time, northern hemisphere winter. Revenaz analysis

What changes in regulation

The points a foreign buyer must resolve in Brazil

TopicWhat it requiresEffect on the process
Investment registrationDeclaration of the foreign direct investment to the Central Bank under Law 14,286 of 2021A condition for future dividend remittance and repatriation of capital
Merger controlCADE filing when Brazilian revenues reach R$750 million and R$75 millionA condition precedent that usually sets the closing date
Sector restrictionsLimits on foreign acquisition of rural land, media and activities in the border stripMay require a structure with a Brazilian partner or carving assets out of the perimeter
Acquisition goodwillTax amortisation of goodwill based on future profitability after merger, between unrelated parties, under Law 12,973 of 2014Shapes the acquisition holding structure and the present value of the tax benefit
Seller capital gainsTaxation of the gain on disposal, with separate rules for resident and non-resident sellersWeighs on the choice between a share sale, an asset sale or a prior reorganisation
Anti-corruptionThe buyer’s home-country laws, such as the US and UK statutes, alongside Law 12,846 of 2013Extends compliance due diligence and the contractual representations

Preparation

What the company needs before talking to buyers abroad

Statements under international standards

Audited IFRS financial statements, with a reconciliation between accounting and management earnings

Quality of earnings

An independent report documenting every EBITDA adjustment, in the format a foreign buyer expects

Bilingual data room

Key documents translated and organised in the structure the buyer uses internally

Integrity programme

Policies, a whistleblowing channel and a record of dealings with public authorities, ready for due diligence

Data protection

A legal basis for international transfers of personal data, required by the LGPD before opening the data room

Clean corporate structure

Intra-group holdings, agreements and guarantees mapped and simplified before the process