Brazil

Advising on Mergers and Acquisitions 

The Mergers and Acquisition advisory area at KPMG in Brazil has a team of professionals with global knowledge and local experience in mergers and acquisitions, purchases of corporate equity, business lines, brands, assets, among other transactions.

Contact

 

 

Cecilio N. Schiguematu

 

Partner, Advising on Mergers and Acquisitions

 

 +55 11 3138-5000 

 cschiguematu@kpmg.com.br

We offer a range of tax services to corporate investors and private equity funds, covering all phases of local and international transactions. Our services include:

 

Pre-acquisition due diligence - pre-acquisition 

Directed toward potential buyers or parties interested in a joint venture, who want to understand the tax, labor, and social security risks to be assumed for realization of the transaction. This allows the contingencies identified to be considered in price negotiation, in the establishment of guarantees, or even in identifying alternative business structures to eliminate or reduce the risk of contingencies materializing, protecting the benefits and planned results.

 

Pre-sale due diligence - pre-sale 

Directed toward companies that wish to prepare for a sale process or joint venture. The preliminary identification of contingency risks that can be identified in a pre-acquisition due diligence process allows steps to be taken to eliminate or reduce the risks of materialization (risk of assessments by tax authorities), facilitating greatly the process of negotiation with any interested party.

 

Structuring the deal 

The tax burden on transactions involving mergers and acquisitions can make a deal good or bad. Accordingly, KPMG advises both buyers and sellers (often both simultaneously) in identification of alternative legal or negotiating structures, resulting in a lower tax burden on the operation or reducing the period of return on investments by the buyer.

 

Post-acquisition advisory 

The performance at this stage has as its main objective the review of corporate and operational structures, resulting from the process of merging or acquiring companies or businesses, to identify alternatives that minimize the tax burden on their activities, increasing their competitiveness and profitability and thus reducing the period of return on investment.

 

The importance of tax, labor, and social security aspects in Mergers and Acquisitions 

 

Brazilian law contains provisions that significantly affect mergers and acquisitions, purchases of corporate equity, business lines, brands, assets, among other things.

 

Companies with global ambitions cannot afford to ignore the business opportunities offered in mergers and acquisitions. For these transactions to generate value, it is important that the tax implications of each transaction be addressed from the outset to identify risks and opportunities of a transaction.

 

Therefore, such operations must be preceded by specific investigations aimed at identifying and quantifying possible risks of contingencies not disclosed in the financial statements of the target company.