2023-06-06 14:20:18
The number of M&As (Mergers and Acquisitions, in Portuguese) in Brazil fell 35% in the first two months of 2023, the lowest value for the period since 2020. From January to February, 179 transactions were disclosed, while 274 transactions were announced in the first two months of 2022, according to a survey by PwC Brazil.
“At this juncture, many investors ask themselves how it is possible to know whether or not it is worth investing in a certain business”, observes Allan Jorge, Co-Founder of CBRdoc (Central Brasileira de Documentos) – a request, management and analysis platform of documents.
Jorge points out that investing in a company is a step that requires careful analysis, regardless of its size or segment. And this is where an element can help: Due Diligence.
“The Due Diligence service consists of carrying out detailed investigations and analyzes on a company or business with the aim of identifying risks, opportunities and assessing the feasibility of a transaction, such as mergers, acquisitions or investments”, he explains.
According to him, the main strategies and tools that can be used in the Due Diligence service involve the analysis of documents, interviews with stakeholders, accounting audits, financial evaluations, legal and regulatory verifications, and market and competition analysis.
“The types of companies that make the most use of this service are those involved in merger, acquisition, investment or sale processes, especially in regulated sectors, such as finance, energy and health”, points out Jorge.
“In addition, publicly traded companies or companies with a global presence also tend to resort to Due Diligence”, he adds.
According to CBRdoc’s Co-Founder, a specialized company can help in the Due Diligence process by providing expertise in different areas, such as financial, legal, regulatory and market.
“In addition, Due Diligence can facilitate the collection of information and the identification of risks and opportunities, making the process more efficient and grounded for decision-making”, concludes Jorge.
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