TTR DealMaker Q&A con Antonio Fernández, presidente de Armabex y ArmanexT
Antonio Fernández Hernando es el presidente de Armabex y de ArmanexT. Economista y Executive MBA por IESE, cuenta con más de 25 años de experiencia en el sector financiero ocupando posiciones directivas de responsabilidad.
TTR: ArmanexT ha sido la primera empresa española autorizada por Euronext como Listing Sponsor. ¿Cómo se gesta la decisión de especializarse en esta bolsa paneuropea? ¿Cree que el número de compañías españolas prestando este tipo de servicio irá en aumento?
Es una decisión que viene empujada por la observación: ¿por qué siendo España el segundo país con más PYMES de Europa no llegaban a medio centenar las que cotizan el Mercado Alternativo español? Después de analizar con detalle las respuestas y justificaciones que nos daban las distintas PYMES y fondos de capital riesgo, llegamos a la conclusión de que había determinados aspectos en los criterios de admisión y permanencia en dicho Mercado que, en principio, no encajaban con las necesidades y expectativas de ambos.
En ArmanexT estamos convencidos de que el camino natural para el crecimiento y la internacionalización de las PYMES es el Mercado de Valores, por lo que continuamos buscando cómo dar respuesta a esta situación. Acudimos entonces al Alternative Investment Market (AIM) -que es el Sistema Multilateral de Negociación similar al MAB, pero de la Bolsa de Londres- pero con el Brexit a punto de concluir, nos centramos en Euronext que es la mayor plataforma de bolsas de Europa y comprende, entre otras, las de Francia, Bélgica, Holanda, Portugal, e Irlanda.
En ArmanexT, como Listing Sponsor oficial ayudamos a las PYMES con los requisitos de acceso a cotizar y el mantenimiento que exige Euronext, los cuales, ahora sí, entendemos son más asumibles para las expectativas, necesidades y tamaño de muchas PYMES y SOCIMI españolas.
TTR: ¿Qué ventajas puede ofrecer el cross-listing en Euronext a las empresas españolas? ¿A qué tipo de empresas recomendaría llevar a cabo el proceso?
Cotizar en dos mercados a la vez supone dar visibilidad a la compañía ante posibles inversores. Es un mensaje claro de los órganos de dirección de la compañía sobre la transparencia y búsqueda de liquidez para sus actuales y futuros accionistas.
No obstante, el cross-listing es más bien un paso intermedio para que la compañía decida finalmente qué Mercado de Valores se adapta mejor a su estrategia de crecimiento y composición accionarial. No creo que con una misma moneda y dentro de la Unión Europea sea esta medida muy sostenible y necesaria a medio plazo. No es sino una parte de un proceso para aquellas compañías que, cotizando en un Mercado, decidan transitoriamente hacerlo en dos a la vez.
Una vez pasado un plazo de tiempo prudencial, y viendo en qué Bolsa tienen más inversores y liquidez, es previsible que tomen la decisión de estar finalmente cotizando en una sola.
TTR: ¿Qué diferencias hay a nivel técnico con el listing que pueden llevar a cabo las empresas españolas en el mercado financiero nacional?
Los requisitos entre ambos Mercados de Valores a nivel de costes y plazos son distintos y variados.
De Euronext destacaría la posibilidad de realizar un Listing Técnico, muy justificado para empresas familiares, empresas tecnológicas o PYMES que quieren participar de las innumerables ventajas que ofrece el cotizar en un Mercado de Valores, pero sin la necesidad inicial de cambiar su estructura accionarial.
Con este sistema que, además, hemos simplificado en ArmanexT, la compañía no necesita realizar una oferta de acciones inicial. Puede cotizar con el número y composición de accionistas que tenga. Más adelante podrá decidir realizar ampliaciones de capital, operaciones corporativas o entradas de capital riesgo para las cuales ya estará perfectamente preparada.
TTR:¿Percibe interés de compañías nacionales para iniciar este proceso de cotización en Euronext? ¿Está Armanext autorizado a prestar sus servicios a empresas de nacionalidad no española?
Cotizar en bolsa ni es caro, ni es complicado ni es solo para las grandes compañías. Estos son mitos obsoletos fruto de otras épocas y mercados. La receptividad que estamos teniendo para ofrecer estas importantes decisiones, siempre pasan por una actuación de máxima responsabilidad de los principales accionistas de las PYMES, en analizar con detalle esta nueva oportunidad que hasta ahora no estaba a su alcance. Son varias las compañías que han iniciado un periodo de 2-3 meses de reflexión y análisis para evaluar las ventajas y las obligaciones que les supone el cotizar en una bolsa como, por ejemplo, la de París.
Fuera de nuestras fronteras, nos encontramos que entre las empresas que lo están analizando, están compañías de países de LATAM, como México, Argentina, Colombia… que se plantean el cotizar, incluso directamente, en la Bolsa de París, con distintos objetivos: desde una deslocalización geo-política por la situación de sus respectivos países, hasta la búsqueda de posibles inversores y notoriedad en la que es la tercera economía del mundo, la zona Euro. Muchas de ellas están tremendamente dolarizadas y este cambio les puede ayudar a iniciar una nueva etapa de crecimiento en un mercado tan importante como es el europeo.
La licencia que tenemos en ArmanexT como Listing Sponsor oficial de Euronext nos permite incorporar a cotizar a cualquier compañía que cumpla los requisitos de admisión con independencia del país de procedencia de la misma. En ArmanexT tenemos tres áreas muy diferenciadas: la dedicada a las PYMES (incluidas SOCIMI) que quieren cotizar en Euronext Access París; la dedicada a las SOCIMI que quieren cotizar en España, y otra área para empresas de LATAM.
Iñigo Erlaiz Cotelo is Partner of Goméz-Acebo & Pombo Spain, Head of Corporate and M&A from February 2016 – specializes in corporate, commercial and M&A transactions, notably involving private equity and restructuring and insolvency-led transactions. He is a member of the Board of Directors of the firm. As to industry sectors he specializes in food, retail, and manufacturing.
TTR: How would you describe the M&A market in Spain year-to-date in 2019?
We are seeing a high amount of
activity. While it’s true that the rate has not been steady, slowing down to a
certain point prior to the election and/or caused by news that has generated
uncertain macro conditions, in general, we are seeing a lot of transactional
activity. This activity has ramped up over H1, driven by abundant liquidity and
low rates that favour access to financing. As this should continue, we expect
H2 to have a similar level of activity.
TTR: As an expert in Retail, Insurance and Pension Funds, how do you expect these sectors to perform? What is your growth forecast for these sectors in Spain in the medium-to-long term?
These are sectors that are going through a
transformation process. In the retail sector, we are seeing movements arising
from the search for new models and the departure of existing models (investment
in companies with a technological base and restructuring of traditional
business). In the insurance sector, there has been a lot of activity stemming
from the reorganisation of bancassurance agreements. Also, there are
cooperation agreements and investments that allow for progress in the
digitalisation of the sector. It is still a fragmented sector, where a
concentration process is pending, which will arrive sooner or later (I think
via an initial concentration phase of mutual insurance companies, by searching
for efficiency and robustness of the balance facing a regulatory environment
that is increasingly demanding with solvency levels).
TTR: How do you see the Spanish private equity market developing?
It is also very dynamic. Funds
have been raised recently which have been larger. Therefore investment has also
grown. There is a lot of competition in the middle of the market (where a large
number of operators compete)and at the high end, but with more limited
investment opportunities. All this, along with a return to lending with
financing structures in which debt-based funds are entering, means a more
favourable context for the seller. I think that the trend will continue for the
rest of the year.
TTR:One of the attractive sectors in Spain for private equity firms is the food industry, in which you also have considerable experience. Why is this sector so attractive for private equity investors in the current economic climate?
It is one of the sectors that has
invested most in technology and process modernisation. There are very
competitive companies, international leaders in their market niches who are
exporters by vocation. At the same time, there is a reconfiguration process in
relationships between suppliers and distributors in which some operators are
looking for access to new markets and clients while others are looking for more
efficiency though vertical integration. Private equity funds can be immensely
useful to support these processes. I think there is a clear flit and that it is
a sector that offers many opportunities to this type of investor profile.
TTR: You also specialize in bankruptcy and restructuring processes. What is the most viable solution for the companies undergoing such processes currently: to access funds from financial institutions or to raise capital through the sale of equity to external investors? What are the advantages of each option?
Traditional financial
institutions avoid these situations. There are special situations funds that
can inject debt in a pre-bankruptcy situation but must be a loan-to-value and a
clear exit scenario. Often, greater legal certainty is offered by structuring
the takeover and restructuring transaction within the bankruptcy, be it with a
proposal of early agreement or via purchasing a production unit. These are
complex transactions, reserved for specialised funds that require a significant
amount of prior risk analysis but whose returns may be substantial in return.
TTR:Cómo describiría la actividad del mercado de M&A español en lo que va de 2019?
Estamos
viendo gran actividad. Es cierto que el ritmo ha sido inconstante, con cierta
ralentización previa al proceso electoral y/o motivada por noticias que han
generado momentos de incertidumbre macro pero, en general, sigue habiendo mucho
movimiento transaccional. Esta actividad se ha acelerado en el final del primer
semestre, impulsada por la abundancia de liquidez y un entorno de tipos bajo
que favorece el acceso a la financiación. Como ese contexto se mantendrá
prevemos una segunda parte del año con un ritmo de actividad similar.
TTR: Más específicamente, como experto en los sectores Retail y Seguros y Fondos de Pensiones, ¿qué balance haría de su actividad transaccional? ¿Qué comportamiento espera en estos sectores en el medio/largo plazo en España?
Son sectores que están viviendo tiempos de transformación y cambio. En el sector retail vemos movimientos provocados por la búsqueda de nuevos modelos y el agotamiento de los existentes (inversiones en compañías con base tecnológica y restructuración de negocios tradicionales). En sector de seguros ha habido mucha actividad derivada de la reorganización de los acuerdos de bancaseguros. También hay inversión y acuerdos de colaboración que permitan avanzar en el proceso de digitalización del sector. Sigue siendo un sector atomizado, donde está pendiente un proceso de concentración que, tarde o temprano, acabará por llegar, yo creo que de la mano de una primera fase de concentración de las mutuas, buscando eficiencia y robustez del balance ante un entorno regulatorio cada vez más exigente con los niveles de solvencia.
TTR: ¿Qué expectativas tiene con el mercado de private equity español?
Está
también muy dinámico. Se han levantado fondos recientemente y, además, de mayor
tamaño, por lo que el ticket de las operaciones ha aumentado también. Hay mucha
competencia en el segmento medio de mercado (donde compite un número elevado de
operadores) y en el alto, con oportunidades de inversión más limitadas.
Todo ello, junto con una vuelta del crédito y con estructuras de financiación
en las que también están entrando los fondos de deuda, se ha traducido en un
contexto más favorable al lado vendedor. Creo que durante el resto del año se
mantendrá la tendencia.
TTR: Uno de los sectores más atractivos para private equity en España es el sector alimentario, en el que también tiene usted experiencia contrastada. ¿Qué ofrece este sector en la actualidad a firmas de private equity?
Es uno
de los sectores que más ha invertido en tecnología y modernización de procesos.
Encontramos compañías muy competitivas, líderes internacionales en sus nichos
de mercado y con vocación exportadora. Al mismo tiempo hay un proceso de
reconfiguración de las relaciones entre proveedores y distribuidores, en el que
algunos operadores buscan acceso a nuevos mercados y clientes y otros más
eficiencia a través de integraciones verticales. Los fondos de private equity
pueden ser de gran utilidad para apoyar estos procesos. Creo que hay un
encaje claro y que es un sector que ofrece grandes oportunidades a este perfil
de inversor.
TTR: Por último, se especializa usted también en insolvencias y restructuraciones. En este tipo de situaciones, ¿es más viable hoy día acudir a financiación de entidades financieras o a inversores que entren en el accionariado de las empresas concursadas? ¿Qué ventajas tiene cada opción?
Las entidades financieras tradicionales evitan
estas situaciones. Hay fondos de situaciones especiales que pueden inyectar
deuda en una situación pre-concursal, pero tiene que haber un loan to value y
un escenario de salida claros. A menudo ofrece mayor seguridad jurídica
instrumentar la operación de toma de control y restructuración dentro del
concurso, ya sea con una propuesta anticipada de convenio o la compra de una
unidad productiva. Son operaciones complejas, reservadas a fondos
especializados, que requieren de mucho análisis previo “a riesgo”, pero que, a
cambio, pueden aportar grandes rentabilidades.
DEALMAKER INSIGHTS
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Rules and Advantages of using Insurance for
M&A Transactions
Transactions involving purchase and
sale, incorporations and mergers, generically denominated as mergers and
acquisitions transactions (“M&A”),
encompass a variety of different structures that, as a rule, involve the
transfer of a set of rights and obligations between buyers and sellers, where
the risks – despite the sincere efforts of the due diligence teams involved –
are not entirely known by the buyers when the transaction contracts (“Contracts”) are executed.
In fact, given the uncertain nature
of the business activities, it is possible that even the sellers are not aware
of all the factors and events, past and present, which can materially impact
the futures of their companies.
Therefore, in order to become
predictable, these Contracts use representations and warranties (“R&W”) clauses. A useful mechanism
for the sharing of risks inherent to M&A deals, the R&W allocate such
risks to those best prepared to support them. In effect, more than in other
sections of the Contracts, it is in the R&W that value in M&A
transactions can be created or destroyed.
In practice, these kinds of clauses
are structured in the form of statements about the company being acquired (the
“Target”) which are made by seller
and that work as a set of assumptions about the transaction’s economic
conditions. In case of any incorrectness or inaccuracy of such clauses, buyer
will be allowed to seek for the pre-established contractual remedies.
In this stage, the possible
measures/remedies vary as wildly as M&A structures themselves, although the
following are almost always included in the Contracts: (i) indemnity assurances
through which the seller is obligated to reimburse the buyer for damages resulting
from the violation of the R&W in question; and (ii) the contracting of
escrow account administration services, through which part of the funds
necessary for the completion of the transaction are unavailable to the parties
and under the management of an independent banking institution that will either
return them to the buyer – to the extent
the R&W are not complied with – or, if they are fully observed, deliver
them to the seller at the end of the term agreed to in the relevant Contract.
Representations and Warranties Insurance
The main purpose of the Representations
and Warranties insurance (“R&W
Insurance”) – the object of this text – is to ensure compliance with the R&W.
Such policies can be taken out by either the buyer or the seller side. As an
alternative to the remedies above, R&W Insurance presents a series of
advantages, namely:
during
pre-closing, it reduces the distress between buyers and sellers regarding the representations
and warranties to the extent the burdens resulting from their violation are
supported by the insurer, an independent third party;
during
post-closing, if the buyer and seller remain in contact, whether because it was
not a full sale, or because the seller continues to participate in the Target’s
management, distress is avoided as any R&W violations will be dealt with
through the insurer and not between the parties;
speeds
up indemnity payments, mainly because these payments made through insurance are
typically less susceptible to litigation than if they were made directly
between the parties;
buyers
are able to access better financing conditions to the extent that the Target’s
activity is subjected to less unexpected events;
ensures
that R&W violations are indemnified regardless of the seller’s financial
condition;
allows
buyers and sellers to cut ties faster – whether through indemnity agreements or
the establishment of escrow accounts, after closing the seller is typically
prohibited from freely accessing the funds resulting from the transaction; this
situation can be especially inconvenient for investment funds with defined duration
term or to any party wishing to use such funds for other purposes; and
with
the trend of decrease of the interest rates, depending on the seller’s capital
cost, taking on a R&W Insurance policy can be more financially advantageous
(with the resulting improvement of the RoR of other investments) compared to
keeping large sums deposited in an escrow account.
Created in 1997 in the US, R&W
Insurance took a while to gain market, but it has grown significantly in recent
years. In 2017, for example, 34% of the M&A transactions with values
between US$ 25 million and US$ 1 billion counted with R&W Insurance, while
the corresponding figure for 2016 was 20%.
Still in 2017, R&W Insurance policies were taken out in 75% of M&A transactions where private equity funds figured as buyers [1].
In addition to the larger market
penetration, over time, R&W Insurance products have become more flexible.
In principle, insurers offering these products were quite reticent when the
policy holder did not maintain part of the risk, in such a manner that R&W Insurance
would cover only the excess of the
limits of the indemnity agreements executed by seller. However, in the US it is
currently possible to find policies without such limitations, although the
premiums for these products are, of course, higher.
In the US, R&W Insurance premiums vary, on average, between 3% to 8% of the insured capital (which is proportional to the value of the transaction), which can make it less attractive for smaller transactions due to the high subscription costs, especially related to qualitative analyses carried out by insurers on the due diligence processes carried out by buyers [2].
In Brazil
The products available in Brazil normally cover: (i) the
amounts payable to buyers as penalties or indemnities under the terms
of the Contracts entered into with the sellers due to violation of the R&W;
and (ii) the defense costs relating to suits filed by third parties as a result
of R&W violations.
The following are exclusions and events of loss of
rights typical of these kinds of insurance products:
R&W explicitly
identified by the insurer as not being covered or only partially covered (in
the extension of such non-cover);
all R&W violations, or
facts that could reasonably result in R&W violations, over which the buyer
either had knowledge of or should have had knowledge of, when signing or
closing the transaction, as the case may be, and that were not disclosed to the
insurer before such dates;
fines and penalties of a
criminal nature;
non-compliance by the
insured (buyer) of its obligations, as established in the Contract; and
negligence by the insured (buyer)
in immediately communicating to the insurer any R&W violation or fact that
could reasonably result in a R&W violation or any aggravation in the risk
of a R&W violation.
The first product of this kind was only marketed in Brazil in the 2014 year by AIG Seguros Brasil S.A. With a product solely available for the buyer side and with a capped cover of US$ 25 million (per transaction) [3], it is clear that the R&W Insurance market in this country still lacks the diversity and flexibility of the North American market. Even so, according to Marsh Corretora de Seguros Ltda., R&W Insurance demand in Brazil over the first half of the 2018 year grew by 35%, compared to the same period in 2017 [4].
Conclusion
Beyond the long term trends (Brazil has been seeing a
significant increase in the volume of M&A over the past two decades[5]),
the imminent approval of an agenda of legislative reform and the start of a new
cycle of prosperity in the country are setting the expectation for a rapid
increase in the volume of M&A transactions and, consequently, of contracting
of R&W Insurance.
Bearing in mind that the national market for this kind
of insurance remains unexploited, this favorable economic scenario represents a
unique growth opportunity for insurers. Meanwhile, for those involved in
M&A deals (especially lawyers), the handling of this product will represent
an important competitive edge, to the extent it will undoubtedly add
significant value to the transactions they deal with, as already happens in
more mature markets.
As
operações de compra e venda, incorporação, fusão de empresas, dentre outras,
genericamente denominadas fusões e aquisições (mergers and acquisitions – “M&A”),
abrangem uma variedade de estruturas diferentes que, em regra, importam na
transferência de um complexo de direitos e obrigações entre alienantes e
adquirentes, cujos riscos – apesar dos esforços sinceros das equipes de due diligence – não são inteiramente
conhecidos pelos adquirentes no momento da assinatura dos contratosda operação (“Contratos”).
Em
verdade, dada a natureza incerta das atividades empresariais, é possível que
nem mesmo o vendedor tenha ciência dos fatores e eventos, presentes ou
pretéritos, passíveis de impactar materialmente seu negócio no futuro.
Assim,
a fim de se tornarem mais previsíveis, os Contratos se valem das cláusulas de
declarações e garantias (representantions
and warranties – “R&W”).
Mecanismo hábil à repartição dos riscos inerentes às operações de M&A, por
meio das R&W é possível aloca-los àqueles melhor equipados para suportá-los.
Com efeito, mais do que em outras seções dos Contratos, em meio às R&Ws
pode-se criar ou destruir valor nas operações de M&A.
Na
prática, as cláusulas desse tipo são estruturadas na forma de assertivas sobre
a empresa a ser adquirira (“Target”)
feitas pelo vendedor e funcionam como um conjunto de premissas das condições
econômicas da transação, cuja eventual falsidade franqueia ao comprador acionar
os remédios contratuais preestabelecidos.
Nesse
passo, as medidas/remédios possíveis são tão variados quanto as estruturas de
M&A, dentre as quais, no entanto, destacam-se pela quase onipresença: (i) os
acordos de indenidade firmados nos Contratos, por meio dos quais o vendedor se
obriga a ressarcir o comprador dos prejuízos decorrentes da violação de
determinada R&W; e (ii) a contratação de serviços de administração de conta
vinculada (escrow account), por meio
dos quais parte dos recursos necessários à concretização da operação ficam
indisponíveis às partes e sob a gestão de instituição bancária independente, que
os devolverá ao comprador na medida em que as R&W venham a ser descumpridas,
ou os entregará ao vendedor após o decurso de prazo contratualmente determinado
dede que não haja violação das mesmas.
Seguro de Representantions and Warranties
O
seguro de declarações e garantias (“Seguro
de R&W”) – objeto deste texto – tem por finalidade principal garantir o
cumprimento das R&W, podendo ser contratado tanto pelo comprador (buyer side), quanto pelo vendedor (seller side). Como alternativa aos
remédios acima, o Seguro de R&W apresenta uma série de vantagens:
no pré-closing, reduz o desgaste negocial entre
comprador e vendedor acerca das declarações e garantias, na medida em que os
ônus decorrentes de sua violação serão arcados por seguradora, terceira à
relação;
no pós-closing,
caso o vendedor e o comprador mantenham relações, seja porque a venda não foi
integral, seja porque o vendedor compõe a administração da Target, evita o
desgaste, na medida em que quaisquer violações às R&W serão tratadas com a
seguradora, e não entre as partes;
agiliza o pagamento das indenizações, em grande
medida porque o pagamento das indenizações por meio de seguro tem menor
litigiosidade do que por meio de cobrança direta entre as partes;
viabiliza melhores condições de financiamento
pelo comprador, na medida em que a atividade da Target fica sujeita a menos imprevistos;
assegura que eventuais violações das R&W
sejam indenizadas a despeito da situação financeira do vendedor;
permite que comprador e vendedor se desvinculem
mais rapidamente: seja por meio de acordos de indenidade, ou do estabelecimento
de contas vinculadas, a vendedora, após o closing,
não pode/deve livremente dispor dos recursos decorrentes da venda, o que pode
ser especialmente inconveniente para fundos de investimento com prazo
determinado de duração ou qualquer um que deseje destinar os recursos para
outra finalidade; e
com a tendência de queda dos juros (taxa
básica), a depender do custo de capital do vendedor, a contratação de Seguro de
R&W pode vir a ser financeiramente mais vantajosa (com a consequente
melhora na taxa interna de retorno do investimento) do que a manutenção de
vultuosas quantias em conta vinculada.
Criado
em 1997 nos Estados Unidos, o Seguro de R&W demorou a se difundir, mas, nos
últimos anos, tem se expandido rapidamente. Vinte anos depois, em 2017, dentre
as operações de M&A ocorridas nos Estados Unidos com valor compreendido
entre US$ 25 milhões e US$ 1bilhão, 34% contaram com a contratação de Seguro de
R&W, contra somente 20% em 2016.
Ainda
em 2017, houve contratação de Seguro de R&W em 75% dos M&A’s nos quais
fundos de private equity atuaram como
compradores[1].
Além
da maior penetração no mercado, com o passar do tempo os produtos de Seguros de
R&W têm se tornado mais flexíveis. Em princípio, as seguradoras que
operavam esse tipo de produto eram muito reticentes em segurar as R&W em
operações nas quais o segurado não retivesse parte do risco; as coberturas de
R&W eram feitas somente em excesso aos limites dos compromissos de
indenidade assumidos pelo vendedor. Hoje, nos Estados Unidos, entretanto, já é
possível contratar coberturas desse tipo mediante proporcional majoração no
valor do prêmio a ser pago, é claro.
No mercado
norte-americano, os prêmios dos Seguros de R&W variam, em média, entre 3% a
8% do capital segurado (que é proporcional ao valor da operação), o que pode
torná-lo pouco vantajoso para operações menores devido aos elevados custos de
subscrição, mormente relacionados às analises qualitativas conduzidas pelas
seguradoras com relação aos processos de due
diligence realizados pelos compradores[2].
No Brasil
Os produtos
disponíveis no mercado brasileiro, normalmente, cobrem: (i) os valores a que os
compradores façam jus a título de multa ou indenização, nos termos dos Contratos
firmados com o vendedor, em virtude da violação às R&W; e (ii) os custos de
defesa relacionados a ações ajuizadas por terceiros em decorrência da violação
das R&W.
Em tempo, são
exclusões e hipóteses de perda de direito típicas de produtos de seguro desse
tipo:
as R&W expressamente identificadas pela seguradora
como não cobertas ou como parcialmente cobertas (na extensão de sua não
cobertura);
todas as violações de R&W, ou fatos que possam
razoavelmente resultar em violações de R&W, sobre as quais o comprador
tinha conhecimento ou deveria ter conhecimento no momento do signing ou closing, conforme o caso, e que não tenham sido informadas à
seguradora antes dessas datas;
multas e penalidades de natureza criminal;
descumprimento pelo segurado (comprador) de suas
obrigações, conforme estabelecidas nos Contratos; e
desídia pelo segurado (comprador) em comunicar à
seguradora imediatamente acerca de qualquer violação das R&W ou fato que
razoavelmente possa acarretar uma violação das R&W ou agravamento desse
risco.
O primeiro
produto do tipo somente veio a ser lançado no país em 2014 pela AIG Seguros
Brasil S.A. Sendo comercializado somente na modalidade buyer side e com valor máximo de coberturas de 25 milhões de
dólares (por operação)[3],
o mercado brasileiro de Seguro de R&W ainda não possui a diversidade e
flexibilidade do norte-americano. Apesar disso, segundo a Marsh Corretora de
Seguros Ltda., entre os meses de janeiro a junho de 2018, a demanda pelo Seguro
de R&W no Brasil cresceu 35%, em comparação com o mesmo período de 2017[4].
Conclusão
Para além das
tendências de longo prazo (o Brasil vem experimentando um aumento significativo
no volume de M&As nas últimas duas décadas[5]),
na iminência da aprovação de uma agenda legislativa reformista e do início de
um novo ciclo de prosperidade no país, a expectativa é que haja um rápido
aumento no volume de operações de M&A e, consequentemente, de contratações
de Seguro de R&W.
Em vista do quão
inexplorado é o mercado nacional de seguros desse tipo, essa conjuntura
econômica favorável representa uma oportunidade única de expansão das carteiras
das seguradoras. Já para os operadores de M&A (especialmente os advogados),
o manuseio desse produto representará relevante diferencial competitivo, na
medida em que certamente agregará imenso valor às operações por eles
conduzidas, tal como já ocorre em mercados mais maduros.
TTR DealMaker Q&A with UNE Asesores Financieros Partner Eduardo Peláez
Eduardo Peláez
Eduardo Peláez is Partner of UNE Asesores Financieros, an M&A advisory boutique focused in Latin America Small/Mid-Market. Eduardo Peláez has conducted many transactions in diverse sectors including tourism, chemicals, real estate and agriculture. Previously Eduardo was associate of Miranda & Amado Abogados and Hernández & Cía. Abogados. Also, worked in Lindley.
He is Lawyer from Pontificia Universidad Católica del Perú and holds a MSc Management from Alliance Manchester Business School.
TTR: What’s your general outlook for the M&A market in Latin American this year, and specifically, in Peru?
EP: We believe the Latin American M&A market is experiencing a quite dynamic phase. Notwithstanding, the particular circumstances of each country in terms of macroeconomic conditions and political environment lead to diverse possibilities and projections.
In the region there are markets like Venezuela, a country with enormous potential but absolutely isolated, but also the case of Chile, a nation with very stable economy and government, but with less opportunities for high returns. Also, there are some up-and-coming countries like Paraguay that has established favorable market conditions through a pro-investment regulatory and tax set of rules.
The case of Peru is very particular. Despite of the political turbulence and the scandals of corruption, the economy is stable and the National Central Bank maintains its growth´s projections around 4%. The last two years have been marked by iconic transactions led by strategic investors pursuing market consolidation, such as the acquisition of the pharmacy chain MiFarma by Intercorp and the recent acquisition of Intradevco by Alicorp.
TTR: What are the primary factors influencing M&A decisions in the current economic climate? How do these economic fluctuations affect investment priorities?
EP: In the last decade, Peru has grown consistently. Even though the pace slowed since 2014, the Peruvian market maintains healthy indexes and presents opportunities for high returns, making it one of the most attractive markets in Latin America.
Likewise, the Private Equity industry is taking more prominence in Peru, generating more dynamism in M&A activity. Global funds like Advent and Carlyle are already active investors in the Peruvian market. Also, there are other relevant players specialized in the mid-market such as HIG, L Catterton, Southern Cross and Victoria Capital Partners, that are exploring opportunities in Peru.
From the sell-side standpoint, the political instability could make some businesses owners’ deciding to sell. Also, the new M&A regulation that will go into effect next year could accelerate the velocity of transactions and increase the volume of deals in the following months.
TTR: What is the state of the capital market in Perú? How has the country evolved in this respect in recent years? What is your forecast for the near-term?
EP: Peruvian capital market is still in an embryonic stage, characterized by low activity and hardly influenced by a few institutional investors. The exclusion of Credicorp from the FTSE Emerging Markets index is symptomatic.
There are some significant efforts of developing the MAV (capital market for mid-size companies with less than S/. 350MM of annual revenue), but the results are modest, with just 13 listed companies since its inception in 2013.
In this context, the recent creation of FIRBIs and FIBRAs, vehicles that have similarities with the American REITs, could represent a great opportunity to attract retail investors and increase the activity and liquidity of the capital market.
TTR: How difficult is it for corporates to access financing from local financial institutions in the current environment? What are the main barriers? How is financing structured?
EP: We have experienced a significant evolution in the volume of Peruvian companies accessing to the banking system in the past few years, going from 25% in 2014 to 40% in 2018, according to ASBANC.
The big challenge is the inclusion of the majority of small and medium enterprises that currently have very few options. The fintech market represents a very interesting alternative for this type of businesses, particularly in the way of factoring platforms.
Also, the increasing presence of foreign debt funds, especially Chilean, are becoming key participants, even in the small-and-mid size market. For example, recently we helped our client Llaxta Inmobiliaria y Constructora to obtain a US$ 10.5MM loan from Volcom Capital Chile for a real estate project in Piura, part of the social program “Techo Propio”.
TTR: Finally, we would like you to share with us your opinions and forecasts about the opening of the Peruvian market with other countries
EP: The Peru market presents many opportunities for all types of international investors, from strategic regional players to family offices and private equity and debt funds.
Beyond the usual M&A activity in the mining sector, we see interesting opportunities of consolidation in the agricultural business. For example, there is the case of Hortifrut that became the leading berry producer in the world after the acquisition of El Rocío. Likewise, last year we had the opportunity to advise the British trader Wealmoor and Limones Piuranos in the acquisition of the mango and avocado´s exporter Sunshine. Also, recently we led the sale of the mango´s exporter Dominus to the Peruvian-Danish joint venture Danper.
On the other hand, the real estate market still presents superiors return rates compared with other countries in Latin America, attracting global and regional real estate funds.
Finally, considering the current development of modern retail, we believe Peru represents an interesting possibility for regional companies dedicated to services related with cold chain and specialized storage.
DealMaker Q&A
Posted on
TTR DealMaker Q&A with IMAP Albia Capital Director Aitor Cayero
Aitor Cayero
Aitor Cayero is a CFA charterholder. He obtained his business administration degree from the Deusto University and continued his studies at Instituto de Empresa within its Program for Direction in Corporate Finance.
He began his career at PwC, where he remained for 5 years and oversaw projects for clients mainly within the Banking and Private Equity sector’s. In 2010, Aitor joined IMAP Albia Capital, and is currently an M&A Director. While at IMAP Albia Capital, he has been involved in over 30 M&A, valuation and refinancing projects, with an emphasis on cross-border engagements.
TTR: As an expert in Corporate Finance/M&A, how would you characterize M&A activity in Spain Year-to-date?
ACB: Despite an interannual slow-down in the M&A market in Q1 2019, presumably produced by some uncertainty looming in the overall macro landscape, our perception of the mid-market M&A is that activity is healthy and will continue to be so for the coming months. Specific circumstances for M&A activity are favorable: Spanish economic backdrop is robust, interest rates remain low and valuation spread between demand and supply in the M&A Mid Market is narrow. What is obvious, though, is that economy has been expanding for several quarters since the last crisis, and M&A activity has accompanied, so it does seem advisable for anyone thinking of entering the M&A market that he or she should do so while circumstances continue to be favorable.
TTR: IMAP Albia Capital advises on many sell-side mandates. Are these transactions typically structured as competitive processes? What level of appetite are you seeing in these targets?
ACB: In most cases, yes, processes are competitive. We have been involved in cases in which conversations have been exclusive from the beginning, but usually only when deal structure and terms are broadly agreed upon from the get-go and a framework of sufficient trust is established between buyer and seller, the latter a factor in which we as advisers frequently intervene.
Regarding appetite,
demand really picks up when deals are above the €20 EV area. That’s where
private equity usually comes into the picture, and, we all know what the dry
powder status is in Spain and internationally; just check the last Bain and Co.
Global Private Equity Report. So, sure, sell-sides that are sufficiently
sizable, offering an attractive project and niche products, and with management
teams willing to lead the project and reinvest, are hot products right
now.
TTR: Which funding resources are preferred by potential buyers seeking to acquire at present?
ACB: To be truthful, most buyers are still not that sophisticated in terms of funding sources: equity and basic amortizing bank loans basically cover most funding resources in Spain. Larger deals in which we have intervened have been structured using non-bank loans, such as mezzanine, unitranche, bullet structures, etc., currently being offered by debt funds, but this isn´t the typical Mid Market M&A deal in Spain today. We at IMAP Albia think the Spanish market will eventually end up resembling the US and UK markets, which are markets in which M&A transactions are mainly non-bank loan funded. Of course, we offer our buy-side clients the possibility of using more complex funding structures, and value creation that these structures add for their shareholders; some flatly dismiss the possibility, and others are open to at least exploring the possibility. It´s part of our role as advisers to let our clients know how to financially improve transaction structures.
TTR: To date, IMAP Albia Capital has advised on many industrial acquisitions. Which segments of the industrial sector are currently most attractive to investors?
ACB: I don´t see specific industrial sectors as being attractive as a whole. Some companies are in apparently unattractive industrial sectors, but are just in the right place within their value chain, with a niche and resilient product, and others are in trendy industrial sectors but don´t have the right elements in place to even be sustainable in the long term. Companies with competent management teams, a clear strategy and a powerful product offering will in most cases be successful, whether it´s one industry or the other.
However, I wouldn´t
want to avoid directly answering your question, so I will say, just to name a
few, that electronics, animal nutrition, industrial material additives, and
non-combustion engine car part suppliers are four industries that are
attracting attention.
TTR: As a local player, what are your thoughts on the current M&A market in Basque Country?
ACB: It is true that we originally started our activity in the Basque Country 15 years ago, and it is truly one of our main geographical markets. However, since joining our previous international organization 7 years ago, and especially since joining IMAP 3 years ago, our geographical reach in Spain is all over the country. IMAP is present in 39 countries with over 500 professional M&A advisers on our team. We currently have offices in Bilbao, Madrid and Barcelona, and most on-going mandates are nationwide.
Regarding the Basque Country, precisely on this topic
we published an article in February of 2018, in which we indicated that Basque
company’s offer skilled and productive workforces, high quality niche products,
strong supplier networks, proximity of public administration, etc., which are
all factors that make it the leading industrial hub in Spain. However, the one
element Basque companies are improving, and need to continue improving, is
size. They need to continue investing in other geographies, not only to become
more attractive more financial and / or industrial investors, but also to
guarantee long-term sustainability.
