Dealmaker Q&A

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TTR Dealmaker Q&A with Allen & Overy Counsel Teresa Méndez

Allen & Overy

Teresa Méndez

Teresa is a counsel within the Corporate/M&A and capital markets team at Allen & Overy in Madrid. Teresa is specialized in equity capital market and public M&A deals in the Spanish market. She has taken part in some of the most relevant IPOs in Spain and has also advised in connection with follow-on offerings, accelerated bookbuilt offerings and takeover bids. Her experience includes some of the most complex deals undertaken as part of the restructuring of the Spanish banking sector. She has also a very solid background in corporate governance matters, private M&A deals and corporate reorganizations.

TTR: What are your main conclusions for the M&A market in 2021? 

The truth is that 2021 has been a fantastic year for M&A. The Spanish market shows significant maturity and at the same time has a lot of development potential, solid assets and excellent professionals, all of which has allowed us to have a very intense year work-wise, and we feel confident and optimistic about what is coming in 2022. 

TTR: What are the most relevant drivers of consolidation in the M&A market in Spain in 2022? 

The M&A market in Spain is mature. There are vectors that will be repeated in 2022, thanks to liquidity levels, the cost of debt, optimism and dynamism – which continue to be in effect. We foresee consolidation in sectors such as fiberoptic networks and restaurants. We also expect many carve-outs to be executed, from which the value of powerful assets is going to emerge; and we continue to see an unstoppable trend in the development of renewable assets, with a market that continues to digest substantial increases in the price per MW in reasonably risky assets, due to the limited capacity existing today. 

TTR: As one of the leading legal advisors in the Spanish M&A market, how has Allen & Overy handled the crisis in terms of advising clients, and what opportunities has the company identified through the current situation in the country? 

Over the last few months, we have focused on staying very close to our most important clients, both companies and funds, which continue to invest and renew their portfolios. We always try to be close to them, accompanying them in the achievement of their strategic plans. Our goal is to be their trusted advisors in transactions of greater complexity, because that’s where we can add value. 

TTR: In which sectors might international investors find the biggest opportunities in Spain in 2022. and why? 

Renewables continue to attract very substantial amounts of investment, both from funds and companies, especially taking into account the transition the latter are undergoing to meet their strategic objectives. We have also seen that other sectors, including technology, which has gained strength as a result of the situation we’ve been experiencing, or food, attract investment from PEs due to their stability and predictability in times of crisis. 

TTR: What will be Allen & Overy’s main challenges in terms of M&A deals in Spain during 2022? 

We believe that 2022 is going to be a very powerful year for M&A. We see a strong pipeline in new investment transactions, in secondary deals and exits favoring industrials. The market is very active and has a lot of liquidity, so we are starting off the year with optimism, and with a lot of work!

Spanish version

Allen & Overy

Teresa Méndez

Teresa es counsel del equipo de Corporate/M&A y mercado de capitales de Allen & Overy en Madrid. Está especializada en la estructuración y ejecución de operaciones de M&A público, incluyendo mediante la formulación de ofertas públicas de adquisición (OPAs). Asimismo, cuenta con una amplia experiencia en operaciones de emisión o venta de valores de equity (salidas a Bolsa, ampliaciones de capital de entidades cotizadas, colocaciones aceleradas, etc.) y en asuntos de gobierno corporativo y conflictos societarios en el ámbito de las sociedades cotizadas. En este ámbito, ha asesorado tanto a emisores como a entidades aseguradoras en varias de las salidas a Bolsa más relevantes de los últimos años. Cuenta además con amplia experiencia en operaciones de M&A privado y restructuración de empresas.

TTR: ¿Cuáles son sus principales conclusiones del comportamiento del mercado M&A en 2021? 

La verdad es que 2021 ha sido un año fantástico para el M&A. El mercado español demuestra una madurez importante y a la vez tiene mucho potencial de desarrollo, activos sólidos y profesionales excelentes…y todo eso ha permitido tener un año intensísimo de trabajo y lleno de optimismo para lo que viene en 2022. 

TTR: ¿Cuáles serán los drivers más relevantes para la consolidación del mercado M&A para España en 2022? 

El mercado de M&A en España como digo es maduro. Hay vectores que van a repetirse en 2022, gracias a los niveles de liquidez, los precios de la deuda y el optimismo y dinamismo – que se mantienen: vemos operaciones de consolidación en sectores como la fibra o la restauración; vemos muchos carve-outs por ejecutar en los que va a aflorar valor de activos potentes; y seguimos viendo una tendencia imparable en el desarrollo de activos renovables, con un mercado que sigue digiriendo incrementos sustanciales del precio por MW en activos razonablemente arriesgados por la limitada capacidad que existe. 

TTR: Allen & Overy, al ser uno de los líderes en asesoría legal en el mercado M&A: ¿Cómo ha manejado la crisis actual en términos de asesoramiento y qué oportunidades han encontrado a través de la coyuntura actual en España? 

Durante los últimos meses, nos hemos volcado en mantenernos muy cerca de nuestros clientes más importantes, tanto compañías como fondos, que siguen invirtiendo y rotando cartera. Siempre centramos nuestros esfuerzos en estar cerca de ellos acompañándoles en la consecución de sus planes estratégicos. Nuestro objetivo es el de ser sus asesores de confianza en los asuntos de mayor complejidad porque es ahí donde podemos y sabemos aportar un valor añadido. 

TTR: ¿Cuáles serían los sectores que podrían ofrecer las mayores oportunidades en España a los inversores internacionales en 2022 y por qué? 

Las renovables siguen atrayendo cantidades muy sustanciales de inversión, tanto por parte de los fondos como de las compañías, sobre todo teniendo en cuenta la transición que están experimentando estas últimas, con el fin de cumplir con sus objetivos estratégicos. También observamos que otros sectores como el tecnológico, que ha cobrado fuerza como consecuencia de la situación que estamos viviendo, o el de la alimentación, atraen inversión de PEs por su estabilidad y predictibilidad en tiempos de crisis. 

TTR: ¿Cuáles serán los principales desafíos para Allen & Overy en términos de transacciones de M&A en España para 2022? 

Creemos que el 2022 va a ser un año muy potente para el M&A, vemos mucho pipeline en operaciones nuevas de inversión, en secundarios y en salidas a favor de industriales. El mercado está muy activo y cuenta con mucha liquidez, por lo que afrontamos el comienzo de año con optimismo…y con mucho trabajo! 

Dealmaker Q&A

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TTR Dealmaker Q&A with Across Legal Partner Sarah Schwartz

Across Legal

Sarah Schwartz

Partner at Across Legal, Sarah has extensive international experience, with a particular focus on M&A and venture capital transactions, both in Spain and in the US. She specializes in legal and strategic advice on mergers and acquisitions, venture capital, integrations, good corporate governance and strategic matters. She has carried out his professional experience in Amadeus IT Group, where she was Senior Legal Counsel, Mergers & Acquisitions of the legal department. In addition, she was also an Attorney at the Madrid office of Baker McKenzie and Associate at the Chicago office of McGuireWoods LLP.

2021 has become a record-breaking year for levels of investment in both private equity and venture capital. Why do you think this is? 

For several reasons. Firstly, in 2020 Covid and the lockdown led to a major freeze of the market; so 2021 was seen as the year of the recovery. This was because of a mix of optimism and the need to do everything that had been prevented in the previous year. Moreover, there is a lot of liquidity and, despite the existence of inflation, interest rates have not yet risen, meaning that the best option is to channel capital into investment. 

In what segments or sectors do you think transactions are more focussed? 

Significant investment is being made in FinTech, or business technology, specifically in cyber security, in applications for remote work or in information and data management. Moreover, in 2022 I believe there will be a clear trend towards investment in ESG, i.e., environment, sustainability and good governance. It is an essential issue for firms that are beginning to prioritise these kinds of matters. 

Many rounds of funding have been run for Spanish startups seeking international investors. Indeed, Across Legal recruited you specifically to promote their presence within these kinds of deals, didn’t they? 

Spain is a hive of creativity and innovation with powerful startup accelerators. It is a stable European country – with a generation of successfully trained young people – which also offers a range of employment benefits compared to other European countries. It is a highly interesting country when it comes to investment. What is more, Spanish startups are also seeking international investors. The USA benefits from more capital and two powerful stock markets facilitating outflows and enhancing the returns secured in Europe. In recent months, I have observed a great deal of movement within Spanish firms with American parent companies over vastly interesting and complex deals. In tax terms, for instance, the impact of these transactions is critical; hence, it is vital to benefit from expert advisors. Indeed, one of the distinguishing traits of Across Legal is that it recruits native lawyers from the USA and the UK who are employed in Spain but benefit from experience in the aforementioned jurisdictions. The firm’s team has a wealth of experience and is capable of handling complex cross-border transactions. 

Furthermore, major exits are being observed. Are we at a good juncture for divestitures? 

In my experience, the best investors I have seen refrain from speculating on market activity; rather, they design an exit in accordance with the company’s strategic plan in order to get the most out of it. A business needs capital in order to grow. If a point comes where you are no longer willing to continue to invest, perhaps the time has come for the company to change hands 

to an investor or firm that will take it to the next level. As a result, the aim is not so much a case of thinking about market valuations or the stock market, but rather about a strategic exercise of considering where I wish to end up in the next three to five years. 

Overall, 2021 has been a big year for Across Legal; a year also in which the company overhauled its image and brand. Why did you consider this change? 

We felt the need to change our brand because we sought to speak the same language as our clients and, as a result, to also communicate in a different manner. The business world is akin to a jungle, and we sought to convey this through our new image. Our mission as legal partners is precisely to help companies and investors to be unstoppable amid the jungle of commercial transactions. 

What goals have you set for 2022? 

Our goals are very closely aligned with the experiences of the firm in recent months. We will uphold our commitment to this transatlantic activity and to transactions with US investors. In addition, we will highlight our presence in Valencia, a city with a remarkable innovation ecosystem. Lastly, we are also contemplating joint work with our IT/IP department, which shall be entirely complementary and will enable us to deliver a 360-degree service to all emerging companies with clear innovation milestones.

Spanish version

Across Legal

Sarah Schwartz

Socia de Across Legal, cuenta con amplia experiencia internacional, con particular enfoque en transacciones de M&A y venture capital, tanto en España como en EE.UU. Está especializada en asesoramiento legal y estratégico en fusiones y adquisiciones, capital riesgo, integraciones, buen gobierno corporativo y asuntos estratégicos. Anteriormente, ha desempeñado su experiencia profesional en Amadeus IT Group, donde fue Senior Legal Counsel, Mergers & Acquisitions del departamento jurídico. Además, fue Abogada en la oficina de Madrid de Baker McKenzie y Associate en la oficina de Chicago de McGuireWoods LLP.

2021 se ha convertido en un año récord en cuanto a niveles de inversión, tanto en private equity como en venture capital, ¿por qué cree que ha sido así? 

Hay varias razones. En primer lugar, en 2020, el Covid y el confinamiento provocaron una gran parálisis del mercado, de manera que 2021 se planteó como el año de la recuperación. Era una mezcla de optimismo y de la necesidad de llevar a cabo todo lo que el año anterior no se había podido realizar. Por otra parte, hay mucha liquidez y, aunque existe inflación, todavía no han subido los intereses, de manera que lo mejor es canalizar el capital hacia la inversión. 

¿En qué segmentos o sectores piensa que habrá más operaciones en el próximo año? 

Se está invirtiendo mucho en fintech, tecnología empresarial, en particular, en ciberseguridad, en aplicaciones para trabajar en remoto o en la gestión de datos y la información. Además, durante 2022 creo que habrá una clara tendencia hacia la inversión en ESG, es decir, en medioambiente, sostenibilidad y buen gobierno. Se trata de un tema fundamental para los corporates, que están empezando a dar prioridad a este tipo de temas. 

En los últimos meses ha habido muchas rondas de financiación de startups españolas buscando inversores internacionales. De hecho, Across Legal decidió realizar su fichaje precisamente para impulsar su presencia en este tipo de deals, ¿no es así? 

España es una cuna de creatividad e innovación, con potentes aceleradoras de startups. Es un país estable y europeo, y hay una generación de gente joven muy formada, al tiempo que existen ciertas ventajas laborales en comparación con otros países europeos. Es un país muy interesante para invertir. Y, al mismo tiempo, las startups españolas también buscan inversores internacionales. EE.UU. tiene más capital y dos mercados de valores potentes facilitando las salidas y mejorando los retornos obtenidos en Europa. En estos últimos meses, he podido comprobar que hay muchísimo movimiento en empresas españolas cuya matriz es americana, con deals muy interesantes y más complejos. En estas operaciones, por ejemplo, el impacto a nivel fiscal es crítico, por lo que es fundamental contar con asesores expertos. Precisamente, uno de los valores diferenciales de Across Legal es contar con abogados nativos, tanto de EE.UU. como en UK, activos en España, pero con experiencia en dichas jurisdicciones. Un team con gran experiencia y capaz de gestionar operaciones cross-border complejas. 

Por otro lado, está habiendo exits de gran relevancia, ¿estamos en un buen momento para las desinversiones? 

En mi experiencia, los mejores inversores que he visto no especulan con la actividad del mercado, sino que diseñan una salida alineada con el plan estratégico de la empresa para sacar el máximo provecho. Para crecer, una empresa necesita capital. Si llega un punto en el que no estás dispuesto a seguir invirtiendo, quizás ha llegado el momento de que la empresa cambie de manos con un inversor o corporate que la lleve al siguiente nivel. Por tanto, no se trata tanto de pensar en las valoraciones del mercado o en la Bolsa, sino en un ejercicio estratégico de pensar donde quiero estar en los próximos tres o cinco años. 

En general, 2021 ha sido importante para Across Legal, un año en el que, además, han renovado su imagen y marca, ¿por qué se plantearon este cambio? 

Sentimos la necesidad de cambiar nuestra marca porque queríamos hablar el mismo idioma que nuestros clientes y, por tanto, comunicarnos también de una forma diferente. El mundo de los negocios es como una selva, y así lo hemos querido representar con nuestra nueva imagen. Nuestra misión como partners legales es justamente ayudar a empresas e inversores a ser imparables dentro de la jungla de las transacciones comerciales. 

¿Qué objetivos se plantean de cara a 2022? 

Nuestros objetivos van muy en línea con lo que ha vivido el despacho durante los últimos meses. Mantendremos nuestra apuesta por esa actividad transatlántica y las operaciones con inversores estadounidenses. Además, haremos hincapié en nuestra presencia en Valencia, una ciudad con un ecosistema de innovación increíble. Y, por último, tenemos muy en mente el trabajo conjunto con nuestro departamento de IT / IP, totalmente complementario y gracias al cual damos un servicio 360º a todas las empresas emergentes que tienen claros hitos de innovación.

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TTR Dealmaker Q&A with Allen & Overy Partner Ignacio Hornedo

Allen & Overy Spain

Ignacio Hornedo

Ignacio is a Corporate/M&A partner at Allen & Overy in Madrid. He has significant expertise in a wide variety of corporate work, including mergers and acquisitions, disposals, private equity deals, joint-ventures, commercial contracts and general corporate advice. He has advised listed and unlisted companies, acting for corporate purchasers, private equity bidders and financial advisors in M&A transactions, both domestic and cross-border. He has also advised a number of leading financial institutions and corporate clients in banking and finance deals. Ignacio has particular expertise in the energy and infrastructure sectors.

TTR: ¿What are your main conclusions for the M&A market in 2021?

The truth is that 2021 has been a fantastic year for M&A. The Spanish market shows significant maturity and at the same time has a lot of development potential, solid assets and excellent professionals … all this has allowed us to have a very intense year workwise and we feel confident and optimists for what is coming in 2022.

TTR: What are the most relevant drivers for consolidating the M&A market in Spain, in 2022?

As I say, the M&A market in Spain is mature. There are vectors that will be repeated in 2022, thanks to liquidity levels, debt prices and optimism and dynamism – which are maintained: we see consolidating transactions in sectors such as fibre or restaurants; We see many carve-outs to be executed in which the value of powerful assets is going to emerge; and we continue to see an unstoppable trend in the development of renewable assets, with a market that continues to digest substantial increases in the price per MW in reasonably risky assets due to the existing limited capacity.

TTR: As one of the leading M&A legal advisors in the Spanish market, how has Allen & Overy handled the crisis in terms of advising clients and what opportunities has the company identified through the current situation in the country?

During the last few months, we have focused on staying very close to our most important clients, both companies and funds, who continue to invest and rotate their portfolio. We always try to be close to them, accompanying them in the achievement of their strategic plans. Our goal is to be their trusted advisers in transactions of greater complexity because there is where we can add value.

TTR: In which sectors might international investors find the biggest opportunities in Spain in 2022? Why?

Renewables continue to attract very substantial amounts of investment, both from funds and companies, especially taking into account the transition that the latter are experiencing, in order to meet their strategic objectives. We also observe that other sectors such as technology, which has gained strength as a result of the situation we are experiencing, or food, attract investment from PEs due to their stability and predictability in times of crisis.

TTR: What will Allen & Overy main challenges be in terms of M&A deals in Spain during 2022?

We believe that 2022 is going to be a very powerful year for M&A, we see a lot of pipeline in new investment transactions, in secondary and in exits in favour of industrials. The market is very active and has a lot of liquidity, so we face the beginning of the year with optimism… and with a lot of work!   

Spanish version

Allen & Overy Spain

Ignacio Hornedo

Ignacio es socio de nuestro equipo de Corporate/M&A en Madrid. Tiene amplia experiencia en una gran variedad de operaciones mercantiles, incluyendo fusiones y adquisiciones, ventas, operaciones de capital riesgo, joint-ventures, acuerdos comerciales y asesoramiento societario general. Ha asesorado a empresas cotizadas y no cotizadas, actuando para compradores industriales, casas de capital riesgo y asesores financieros. También ha asesorado a un buen número de instituciones financieras y empresas en operaciones de financiación. Su experiencia en financiaciones incluye financiaciones de proyecto y corporativas, financiación de adquisiciones, reestructuraciones y financiación apalancada, tanto a nivel nacional como internacional. Ignacio está especializado en el sector de energía e infraestructuras.

TTR: ¿Cuáles son sus  principales conclusiones del comportamiento del mercado M&A en 2021?

La verdad es que 2021 ha sido un año fantástico para el M&A. El mercado español demuestra una madurez importante y a la vez tiene mucho potencial de desarrollo, activos sólidos y profesionales excelentes…y todo eso ha permitido tener un año intensísimo de trabajo y lleno de optimismo para lo que viene en 2022.

TTR: ¿Cuáles serán los drivers más relevantes para la consolidación del mercado M&A para España en 2022?

El mercado de M&A en España como digo es maduro. Hay vectores que van a repetirse en 2022, gracias a los niveles de liquidez, los precios de la deuda y el optimismo y dinamismo – que se mantienen: vemos operaciones de consolidación en sectores como la fibra o la restauración; vemos muchos carve-outs por ejecutar en los que va a aflorar valor de activos potentes; y seguimos viendo una tendencia imparable en el desarrollo de activos renovables, con un mercado que sigue digiriendo incrementos sustanciales del precio por MW en activos razonablemente arriesgados por la limitada capacidad que existe.

TTR: Allen & Overy, al ser uno de los líderes en asesoría legal en el mercado M&A: ¿Cómo ha manejado la crisis actual en términos de asesoramiento y qué oportunidades han encontrado a través de la coyuntura actual en España?

Durante los últimos meses, nos hemos volcado en mantenernos muy cerca de nuestros clientes más importantes, tanto compañías como fondos, que siguen invirtiendo y rotando cartera. Siempre centramos nuestros esfuerzos en estar cerca de ellos acompañándoles en la consecución de sus planes estratégicos. Nuestro objetivo es el de ser sus asesores de confianza en los asuntos de mayor complejidad porque es ahí donde podemos y sabemos aportar un valor añadido.

TTR: ¿Cuáles serían los sectores que podrían ofrecer las mayores oportunidades en España a los inversores internacionales en 2022 y por qué?

Las renovables siguen atrayendo cantidades muy sustanciales de inversión, tanto por parte de los fondos como de las compañías, sobre todo teniendo en cuenta la transición que están experimentando estas últimas, con el fin de cumplir con sus objetivos estratégicos. También observamos que otros sectores como el tecnológico, que ha cobrado fuerza como consecuencia de la situación que estamos viviendo, o el de la alimentación, atraen inversión de PEs por su estabilidad y predictibilidad en tiempos de crisis.

TTR: ¿Cuáles serán los principales desafíos para Allen & Overy en términos de transacciones de M&A en España para 2022?

Creemos que el 2022 va a ser un año muy potente para el M&A, vemos mucho pipeline en operaciones nuevas de inversión, en secundarios y en salidas a favor de industriales. El mercado está muy activo y cuenta con mucha liquidez, por lo que afrontamos el comienzo de año con optimismo…y con mucho trabajo!   

Dealmaker Q&A

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TTR Dealmaker Q&A with Lefosse Advogados Partners Luiz Octavio Lopes and Rodrigo Junqueira

Lefosse Advogados

Luiz Octavio Lopes

Luiz is a partner in the corporate and M&A area at Lefosse. He has extensive transactional experience having served as leading counsel in a large number of corporate and capital markets transactions in Brazil and abroad. Before joining Lefosse, Luiz Octavio was a managing director at the investment banking group at Banco Credit Suisse where he was head of the M&A area in Brazil.

Luiz Octavio holds a Law degree from UERJ (Universidade Estadual do Rio de Janeiro) and a master’s degree in Law (LL.M) from the New York University School of Law.

Rodrigo Junqueira

Rodrigo is the managing partner and partner in the Corporate and M&A, Capital Markets and Private Equity areas at Lefosse. He has extensive experience in capital markets operations including equity and debt, advising both issuers and coordinators. Rodrigo has used his knowledge of listed companies and regulations to develop a broad and successful practice covering M&A and private equity.

Rodrigo graduated in Law from PUC-SP (Pontifícia Universidade Católica de São Paulo) and in Administration from FGV-SP (Fundação Getulio Vargas). He has international experience as an associate at Davis, Polk & Wardwell in New York.

TTR: How would you describe the current situation of the players in the transactional market in Brazil with the current political and economic situation?, What will Lefosse main challenges be in terms of M&A deals in Brazil during 2022? 

Uncertainties relating to Brazilian political and economic conditions could be at the core of an M&A buyer’s risk analysis in 2022. In the wake of the pandemic, a major worry is a general downward spiral in the economy, associated with the depreciation of our local currency (ie Real), inflation and high interest rates, that jointly continue to delay company projects and household consumption. We believe that as the electoral scenario becomes clearer and the government demonstrates control of public accounts, such risks will be seen as overcome.

Moreover, COVID-19 is still a major challenge to be overcome. Since the outbreak of the pandemic, many prospective buyers have postponed their purchases until the COVID-19 uncertainties are over. Nevertheless, as the recent uptick in deals has shown, the pandemic’s uncertainties are no longer a showstopper to M&A activity.

TTR: Which three sectors present the greatest opportunities for international investors in in Brazil 2022, and why?

We believe that the most attractive sectors for foreign investors at the moment are those that are least exposed to the political cycle. In this sense, we are already working on an important number of transactions related to the agribusiness sector, as a clear result of the current high in the commodities cicle. Likewise, we believe that we will continue to see a lot of interest in the energy sector, especially in operations related to solar projects, transmission lines and DG, driven by the 3D industry trend –Decarbonization, Decentralization and Digitization. Additionally, we continuously see a lot of interest in the healthcare sector, resulting from the sector’s tremendous growth potential.

Nevertheless, we may be positively surprised by expressive movements in sectors that are currently traded on heavily discounted multiples, whether directly due to COVID-19 or other factors, as is currently the case of the retail and the industrial sectors.

TTR: What will be the main drivers for consolidation in technology sector in 2022?

In our view, that M&A operations in the technology sector in Brazil will be driven by 3 main factors: capitalized companies, operational and commercial synergies and digital transformation.

  1. Capitalized companies. Many industry leading companies have recently concluded their IPOs in B3. The increase in the representation of companies in the technology sector at B3 has been quite expressive: it went from 4 companies at the beginning of 2020 to 17 at the end of 2021. Additionally, there are also Brazilian companies that recently concluded their IPOs in other countries. Such companies aim to expand, often not only in the local market, but also in the international market, and present the acquisition of competing or complementary companies as one of the main destinations of the funds raised.
  2. Operational and commercial synergies. This movement involves the formation of large holding companies with already consolidated companies seeking synergies, increased margins and cross-selling, serving the same company with a more complete portfolio of services and solutions.
  3. Digital transformation. Finally, we have several companies from traditional sectors of the economy that must undergo digital transformations to maintain their business and that, through such acquisitions, seek speed-up such process or even to reposition their product, brand, or even the way of providing the service offered.

TTR: How do you evaluate the Brazilian capital markets in 2021? What factors could coincide for companies to once again perceive an attractive window to go public?

Brazilian capital markets had a record year in 2021. Companies from the most diverse sectors went public and investors of the most diverse profiles recognized the Stock Exchange as a vehicle for diversifying their investment portfolios. We are very enthusiastic and excited about 2022. We believe that the maturation trend of the Brazilian capital market will be maintained, and as uncertainties associated with the presidential election dissipate over the course of the year, a large number of companies will access the market to capture resources to sustain their growth.

TTR: What does the dissemination of digital investment platforms imply for access to the capital market in Brazil in the short and medium term?

In 2020 and 2021 we saw a large number of investors, mainly individuals, investing for the first time in the Stock Exchange due to the increasing reach of the digital platforms. We believe that in this year of 2022 and in the years to come, we will not only face an acceleration in the use of these platforms to access investments on the Stock Exchange — bringing greater strength and ease of access to the Brazilian capital market –, but also the opening of a new cycle, in which a new range of products, until recently restricted to large institutional investors, will be offered to all. Investors will have more direct access to the so-called “alternative investments” – such as judicial, energy and agricultural assets, to cryptoactive assets, as well as greater ease in trading fixed-income securities – which could foster and boost the long-awaited liquidity in the Brazilian secondary fixed-income market.

TTR: What will be the main regulatory and tax challenges for the M&A market in 2022?

We do not anticipate major regulatory or tax challenges this year in Brazil. Due to the upcoming elections, we believe in a trend towards stability until the political scenario is defined.

Portuguese version

Lefosse Advogados

Luiz Octavio Lopes

Luiz é sócio da área de Societário e M&A do Lefosse. Possui ampla experiência transacional, tendo atuado como leading counsel em grande número de operações societárias e de mercado de capitais no Brasil e no exterior. Antes de ingressar no Lefosse, atuou como managing director no grupo de investimentos do Banco Credit Suisse, onde foi head da área de M&A no Brasil.

Graduou-se em direito pela UERJ (Universidade Estadual do Rio de Janeiro) e recebeu o título de mestre em direito (LL.M) pela New York University School of Law.

Rodrigo Junqueira

Rodrigo é managing partner e sócio das áreas de Societário e M&A, Mercado de Capitais e Private Equity do Lefosse. Possui ampla experiência em operações no mercado de capitais, incluindo equity e dívida, assessorando tanto emissores quanto coordenadores. Tem usado seu conhecimento em empresas listadas e regulamentação para desenvolver uma ampla e bem-sucedida prática cobrindo M&A e private equity.

Graduou-se em Direito pela PUC-SP (Pontifícia Universidade Católica de São Paulo) e em Administração pela FGV-SP (Fundação Getulio Vargas). Possui experiência internacional como advogado associado no escritório Davis, Polk & Wardwell em Nova Iorque.

TTR: Como você descreveria a situação atual dos players do mercado transacional no Brasil com a atual conjuntura política e econômica? Quais serão os principais desafios da Lefosse em termos de fusões e aquisições no Brasil ao longo de 2022?

Incertezas relacionadas às condições políticas e econômicas brasileiras podem estar no cerne de uma análise de risco para transações de M&A em 2022, mas à medida que o cenário eleitoral fique mais claro e o governo demonstre controle das contas públicas, os riscos serão vistos como superados.

Na esteira da pandemia, uma grande preocupação é a espiral descendente na economia, associada à desvalorização do real, inflação e juros altos, que em conjunto continuam atrasando os projetos das empresas e reduzindo o consumo das famílias. A COVID-19 ainda é um grande desafio a ser vencido. Desde o início da pandemia, muitos compradores em potencial adiaram seus planos até que as incertezas decorrentes terminassem. No entanto, como o recente aumento nos negócios mostrou, as incertezas da pandemia não são mais um obstáculo para a atividade de M&A.

TTR: Quais são os três setores que apresentam as maiores oportunidades para investidores internacionais no Brasil em 2022, e por quê?

Os setores mais atraentes para o investidor estrangeiro no momento são aqueles que estão menos expostos ao contexto político. Nesse sentido, realizamos um número importante de transações relacionadas ao agronegócio, como resultado claro da atual alta do ciclo de commodities. Nesse cenário, continuaremos a ver muito interesse no setor de energia, especialmente nas operações relacionadas a projetos solares, linhas de transmissão e Geração Distribuída, impulsionados pela tendência da indústria 3D – Descarbonização, Descentralização e Digitalização. Além disso, observamos continuamente um grande interesse no setor de saúde, com enorme potencial de crescimento.

No entanto, podemos nos surpreender positivamente com movimentos expressivos em setores que atualmente são negociados em múltiplos fortemente descontados, seja diretamente devido à COVID-19 ou a outros fatores, como é o caso atualmente do varejo e da indústria.

TTR: Quais serão os principais fatores para a consolidação do setor de Tecnologia em 2022?

As operações de M&A no setor de tecnologia no Brasil serão impulsionadas por 3 fatores principais: empresas capitalizadas, sinergias operacionais e comerciais, e transformação digital. Muitas empresas capitalizadas líderes do setor concluíram recentemente seus IPOs na B3. O aumento da representatividade de empresas do setor de tecnologia na B3 tem sido bastante expressivo: passou de 4 empresas no início de 2020 para 17 no final de 2021. Além disso, há também empresas brasileiras que concluíram recentemente seus IPOs em outras países. Elas querem expandir, muitas vezes não apenas no mercado local, mas também no mercado internacional, e apresentar a aquisição de empresas concorrentes ou complementares como um dos principais destinos dos recursos captados.

Nos movimentos operacionais e comerciais há a formação de grandes holdings com empresas já consolidadas buscando sinergias, aumento de margens e cross-selling, atendendo a mesma empresa com um portfólio mais completo de serviços e soluções.

Por fim, temos várias empresas de setores tradicionais da economia que devem passar por transformações digitais para manter seus negócios e que, por meio dessas aquisições, buscam agilizar esse processo ou mesmo reposicionar seu produto, marca, ou mesmo a forma de fornecimento dos serviços oferecidos.

TTR: Como você avalia o mercado de capitais brasileiro em 2021? Que fatores podem coincidir para que as empresas voltem a perceber uma janela atraente para abrir o capital?

O mercado de capitais brasileiro teve um ano recorde em 2021. Empresas dos mais diversos setores abriram capital e investidores dos mais variados perfis reconheceram a Bolsa de Valores como um veículo de diversificação de suas carteiras de investimentos. A tendência de amadurecimento do mercado de capitais brasileiro possivelmente se manterá em 2022 e à medida que as incertezas associadas à eleição presidencial se dissiparem ao longo do ano, muitas empresas acessarão o mercado para captar recursos e sustentar seu crescimento.

TTR: O que significa a disseminação das plataformas digitais de investimento para o acesso ao mercado de capitais no Brasil no curto e médio prazos?

Em 2020 e 2021, vimos um grande número de investidores, principalmente pessoas físicas, pela primeira vez na Bolsa de Valores devido ao crescente alcance das plataformas digitais. Em 2022 e nos próximos, não veremos apenas uma aceleração no uso dessas plataformas para os investimentos em Bolsa – trazendo mais solidez e facilidade de acesso ao mercado de capitais brasileiro -, mas também a abertura de um novo ciclo, no qual uma gama de produtos, até recentemente restrita a grandes investidores institucionais, será oferecida a todos. Os investidores terão acesso mais direto aos chamados “investimentos alternativos” – como ativos judiciais, energéticos e agrícolas, aos criptoativos, além de mais facilidade na negociação de títulos de renda fixa – o que poderá fomentar e impulsionar a tão esperada liquidez no mercado secundário de renda fixa brasileiro.

TTR: Quais serão os principais desafios regulatórios e tributários para o mercado de M&A em 2022?

Não estimamos grandes desafios regulatórios ou fiscais neste ano. Com a proximidade das eleições, há tendência de estabilidade até que o cenário político seja definido.

Dealmaker Q&A

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TTR Dealmaker Q&A with DLA Piper Martinez Beltrán Partners Felipe Quintero and Juan Manuel De La Rosa

DLA Piper Martinez Beltrán

Felipe Quintero

Felipe is a Partner of the Corporate, M&A and Financial Practices of the firm and currently co-heads the M&A practice group. A significant component of his practice involves advising private equity funds and companies in local and cross-border mergers and acquisitions. 

Felipe works on a regular basis with the most active and significant private equity funds and investment companies in Colombia and Latin-America. 

Mr. Quintero is professor of Commercial Contracts at Universidad de los Andes, and member of the Board of the Shaio Foundation, a leading clinic specialized in the treatment of highly complex cardiovascular pathologies.

Juan Manuel De La Rosa

Juan Manuel is a partner in the areas of mergers and acquisitions, finance and corporate law. His practice is focused on advising private equity funds and strategic investors.

Between 2007 and 2008 he worked at Chadbourne & Parke in New York. In addition to having been a professor of the Obligations class at the law faculty of the Universidad de Los Andes, he designed and implemented the International Business course at the same faculty. Juan Manuel has been highlighted in several legal directories as one of the leading Colombian experts in mergers and acquisitions, and today is considered a leader in the local market by Chambers & Partners, Legal 500 and IFLR 1000 publications. 

TTR: How would you describe the current situation of the players in the transactional market in Colombia with the current political and economic situation?

In our experience, 2021 was a very active year in terms of M&A activity. The above due to the results of a global trend towards a gradual normalization of markets with the opening of economies, as well as a significant increase in consumption. While in 2020 the exercise aimed to the protection of existing investments and operations, as well as to the definition of defensive strategies, in 2021 the strategic and financial players better understood the dynamics of the pandemic and carried out transactions that had been suspended. This year had a significant investment boost in the industries that showed greater projection. We would highlight a special interest in technology, consumption, logistics, e-commerce, data centers, infrastructure, agriculture, the financial sector, and health. We expect a less active first semester of 2022 given the pre-electoral uncertainty, but a second semester with a significant increase whereby investments will continue to be invested in order to continue using the available capital. During 2022 it will be fundamental, in the case of Colombia, to be a country with strong and credible institutions and legal certainty. Likewise, we are beginning to witness an increase in the interest in investing in companies with a presence in several countries in the region, reducing the correlative risk in each jurisdiction, and expanding it to a regional risk.

TTR: What are the most relevant drivers for consolidating the M&A market in Colombia and Latin America, over the medium and long term?

From our perspective, international private equity funds and some strategic players are actively looking for growth opportunities and regional acquisitions. Regionally, we are characterized by having fragmented segments of the economy, which generate acquisition opportunities to execute consolidation strategies. Particularly in the case of Colombia, we have a growing market of people with middle-income that generate this type of opportunity. We also believe that the M&A market will consolidate in the medium term, to the extent that successful divestment processes continue by private equity funds and institutional investors, with certainty in tax regulations and institutional and judicial strength.

TTR: As one of the leading M&A legal advisors in the Colombian market, according to our TTR ranking, How has DLA Piper Martínez Beltrán handled the current crisis in terms of advising clients and what opportunities has the company identified in the past months through the current situation in the country?

We were fortunate to have advised many international private equity funds dedicated to investing towards a consolidation of their investments in the industries mentioned above. We also participated in numerous operations in the energy and infrastructure sectors, which have become an important bet by investors. Additionally, we were advisors in several operations in special situations (distressed M&A) given our important capacities in these matters. Most importantly, we were able to provide comprehensive advice with added value that allowed the identification and management of risks in a context full of challenges and uncertainties. DLA Piper is becoming the undisputed leader in large regional transactions, with consolidated regional practices (many of them co-led from Colombia), mainly through collaboration with private equity funds, investment funds and strategic investors in various jurisdictions in the region.

TTR: In which sectors might international investors find the biggest opportunities in Colombia in 2022? Why?

We would like to highlight the special interest investors are having in technology, logistics, e-commerce, data centers, infrastructure, agriculture, the financial sector and health. Particularly, the health sector (both products and services), has been seen as a defensive sector with a very strong investment thesis. The aging of the population, along with the technological innovation component and the trend towards consolidation that we are experiencing, are engines that have substantially driven investment in this sector. Likewise, we have seen significant interest in the retail sector and a relevant increase in transactions related to acquisitions of real estate projects (real estate M&A).

TTR: What will DLA Piper Martínez Beltrán main challenges be in terms of M&A deals in Colombia during 2022?

The main challenge for DLA Piper will be advising our clients during an election year. This will imply establishing adequate legal protections for our clients and understanding and being able to adequately reflect the concerns of our clients. Moreover, DLA Piper Martínez Beltrán has achieved exponential growth, quickly positioning itself as a leader in several legal areas and industries; therefore, one of the greatest challenges will be to maintain organized and sustained growth, in order to continue providing our clients with the best legal services in Colombia.

Spanish version

DLA Piper Martinez Beltrán

Felipe Quintero

Felipe es socio de las prácticas corporativas, de fusiones y adquisiciones y financieras de la firma y actualmente codirige el grupo de prácticas de fusiones y adquisiciones. Un componente significativo de su práctica consiste en asesorar a fondos y compañías de capital privado en fusiones y adquisiciones locales y transfronterizas. 

Felipe trabaja regularmente con los más activos y significativos fondos de capital privado y compañías de inversión en Colombia y América Latina.

El Sr. Quintero es profesor de Contratos Comerciales en la Universidad de los Andes y miembro de la Junta Directiva de la Fundación Shaio, una importante clínica especializada en el tratamiento de patologías cardiovasculares de alta complejidad.

Juan Manuel De La Rosa

Juan Manuel es socio de las áreas de fusiones y adquisiciones, derecho financiero y derecho corporativo. Su práctica está centrada en asesorar a fondos de capital privado e inversionistas estratégicos.

Entre los años 2007 y 2008 trabajó en la firma Chadbourne & Parke en Nueva York. Además de haber sido profesor de la clase de Obligaciones en la facultad de derecho de la Universidad de Los Andes, diseñó y puso en marcha el curso de Negocios Internacionales en esa misma facultad. Juan Manuel ha sido destacado en varios directorios legales como uno de los principales expertos colombianos en materia de fusiones y adquisiciones y hoy en día es considerado líder en el mercado local por las publicaciones Chambers & Partners, Legal 500 e IFLR 1000. 

TTR: ¿Cómo describiría la situación actual de los actores del mercado transaccional en Colombia con la actual coyuntura política y económica?

En nuestra experiencia, todo el 2021 fue especialmente activo. Lo anterior se deriva de una tendencia global a una normalización gradual de los mercados con la apertura de economías, así como un importante aumento del consumo.  El 2020 fue un ejercicio muy reactivo para proteger las inversiones y operaciones existentes y para definir las estrategias de respuesta, mientras que en 2021 los jugadores estratégicos y financieros entendieron mejor la dinámica de la pandemia y acometieron transacciones que se habían suspendido. Este año tuvo un impulso de inversión relevante en las industrias que mayor proyección presentan. Resaltaríamos el interés en tecnología, logística, e-commerce, data centers, infraestructura, agro, sector financiero, y salud. Esperamos un 2022 menos activo en el primer semestre ante la incertidumbre pre-electoral, pero con un segundo semestre con un repunte importante donde los fondos seguirán invirtiendo con una presión relevante para continuar utilizando el capital disponible.  En el 2022 será clave, en el caso de Colombia, procurar ser creíbles cuando decimos que somos un país con instituciones fuertes y seguridad jurídica. Así mismo, empezamos a ver un atractivo en realizar inversiones de empresas con presencia en varios países de la región, disminuyendo el riesgo correlativo que se tiene en cada jurisdicción, y ampliándolo a un riesgo más regional.

TTR: ¿Cuáles serán los drivers más relevantes para la consolidación del mercado M&A en el mediano y largo plazo para Colombia y América Latina?

En nuestra opinión vemos a los fondos internacionales y algunos jugadores estratégicos muy activos buscando oportunidades de crecimiento e implantación regional. Somos una región que se caracteriza por tener segmentos de la economía atomizados e informales, que generan oportunidad de adquisición para ejecutar estrategias de consolidaciones.  En el caso de Colombia, en particular, con un mercado creciente de personas de ingreso medio creciente que generan este tipo de oportunidades. También se consolidará el mercado de M&A en el mediano plazo, en la medida en que continúen procesos exitosos de fondos de capital privado e inversionistas institucionales en sus procesos de desinversión, en la certidumbre en la normatividad tributaria y en la fortaleza institucional y judicial.

TTR: DLA Piper Martínez Beltrán, al ser uno de los líderes en asesoría legal en el mercado M&A según nuestro ranking TTR: ¿Cómo ha manejado la crisis actual en términos de asesoramiento y qué oportunidades han encontrado en los últimos meses a través de la coyuntura actual en Colombia?

Tuvimos la suerte de asesorar a muchos fondos de capital privado internacionales con gran liquidez que se dedicaron a invertir para consolidar sus tesis de inversión en las industrias antes mencionadas. También participamos en muchas operaciones en el sector de energía e infraestructura que se han convertido en una importante apuesta anticíclica de los inversionistas. Asimismo, fuimos asesores en varias operaciones en situaciones especiales (distressed M&A) dadas nuestras importantes capacidades en la materia. No obstante, lo más importante fue dar una asesoría integral con valor agregado que permitiera identificar y administrar riesgos en un contexto lleno de retos e incertidumbres. DLA Piper se ha venido convirtiendo en el líder indiscutible en transacciones de gran envergadura regional, con prácticas regionales consolidades y con unos liderazgos claros (muchos de ellos coliderados desde Colombia), principalmente en colaboración con fondos de capital privado, fondos de inversión e inversionistas estratégicos en varias jurisdicciones de la región.

TTR: ¿Cuáles serían los sectores que podrían ofrecer las mayores oportunidades en Colombia a los inversores internacionales en 2022 y por qué?

Quisiéramos resaltar el interés en tecnología, logística, e-commerce, data centers, infraestructura, agro, sector financiero y salud. Particularmente, el sector salud (tanto producto como servicio) ha sido visto como un sector defensivo con una tesis de inversión muy fuerte. El envejecimiento de la pirámide poblacional, el componente de innovación tecnológica y la tendencia a la consolidación que estamos viviendo son motores que han impulsado sustancialmente la inversión en este sector. Así mismo, hemos visto un interés importante en el sector de retail y un incremento importante en las transacciones relacionadas con adquisiciones de proyectos inmobiliarios (M&A inmobiliario).

TTR: ¿Cuáles serán los principales desafíos para DLA Piper Martínez Beltrán en términos de transacciones de M&A en Colombia 2022?

El principal desafío de DLA Piper será poder asesorar a nuestros clientes en un año electoral; esto implicará establecer las protecciones adecuadas y entender y poder reflejar adecuadamente las preocupaciones propias de nuestros clientes. Así mismo, DLA Piper Martinez Beltrán ha logrado un crecimiento exponencial, posicionándose rápidamente como líder en ciertas áreas e industrias, por lo que el gran reto será mantener este crecimiento organizado para poder seguir brindándole a nuestros clientes el mejor servicio legal en Colombia.