Volume de fusões e aquisições encolhe 30% até julho
Estados Unidos reduziram suas aquisições em Portugal em 61%.
Volume de investimentos de Venture Capital sofre redução de 24%
Espanha continua sendo o país que mais investe em Portugal, com 19 transações
Patrocinado pelo:
O mercado transacional português registou até o mês de julho 182 transações com um valor total de EUR 10bi, segundo o relatório mensal do TTR -Transactional Track Record, o que representa um aumento de 50% do valor movimentado e uma redução de 30% no volume de negócios, em relação ao mesmo período de 2019.
Por sua vez, no mês de julho se registou um movimento de EUR 2,7bi e um volume de 18 transações de fusões e aquisições entre anunciadas e concluídas. Este aumento em relação ao número de transações de junho representa um rompimento, após uma redução consecutiva no número de operações mensal que vinha acontecendo desde fevereiro.
O setor mais ativo do ano é o Imobiliário com 51 transações até o fim de julho, aumento de 2% na comparação anual. Segue o setor de Tecnologia com 23 operações, redução de 47% em relação ao mesmo período de 2019.
Âmbito Cross-Border
Até o fim de julho, os Estados Unidos reduziram suas aquisições em Portugal em 61%. Fundos de Private Equity e Venture Capital estrangeiros também reduziram seus investimentos em Portugal em 67%. Da mesma forma, empresas estrangeiras diminuíram em 17% seus investimentos no setor de Tecnologia e Internet em Portugal, na comparação anual.
A Espanha continua sendo o país que mais investe em Portugal, com 19 transações até o fim de julho. Neste ano, França está na segunda colocação com 11 operações e Estados Unidos no terceiro lugar com nove transações. Igualmente, Espanha é o destino favorito de Portugal na hora de investir, com nove operações até o fim de julho.
Private Equity
Até julho, os fundos de Private Equity registraram EUR 1,9bi no valor transacionado, o que representa um aumento de 20% na comparação anual. Foram dez transações, diminuição de 67%.
Venture Capital
Os fundos de Venture Capital movimentaram um total de EUR 254m até julho, aumento de 52% em relação a 2019. Já as transações foram 32, representando uma redução de 24%. O setor que mais movimentou foi o de Tecnologia com 15 transações, diminuição de 44% na comparação anual. O segundo setor mais ativo foi o de Internet, com sete transações, crescimento de 17% na comparação anual.
Transactional Impact Monitor: Spain & Portugal – Vol. 4
Posted on
Transactional Impact Monitor: Spain & Portugal – Vol. 4
31 July 2020
TTR’s Transactional Impact Monitor (TIM) is a Special Report combining local knowledge and market visibility from top dealmakers developed to address extraordinary situations affecting the macroeconomic stability and M&A outlook in core markets
Sponsored by:
INDEX
SPAIN – M&A Outlook – Capital Markets – Private Equity – Handling the Crisis
PORTUGAL – M&A Outlook – Private Equity – Handling the Crisis
– Dealmaker Profiles
SPAIN
On the cusp of Spain’s summer holiday season, the country confronts the reality that its fight against SARS-CoV-19 may be far from over. The streets of Madrid are once again full of pedestrians, who are now required to wear masks in public, as reported cases surge to levels not seen since the beginning of May. New infections are being reported mainly among younger Spaniards, however, and haven’t resulted in the same level of hospitalizations, according to the local press.
The official death toll attributed to the novel corona virus stands just shy of 45,000, while in any given year, there are nearly 500,000 deaths overall in the country. Spain’s death rate has trended upwards over the past 10 years as the country’s population ages, with both cancer and circulatory system diseases each blamed for more than 100,000 deaths annually.
Nearly half of Spain’s autonomous communities are some semblance of normal, while the other half are considered high- or medium-risk by the authorities. Those who can work remotely, continue to do so across much of the country.
Dealmakers in the transactional market have remained incredibly busy, and the pipeline is looking robust for 2H20, sources told TTR. The workload for legal advisor Uría Menéndez has been surprisingly heavy, given the low expectations earlier in the year, despite the poor visibility about what will happen in the coming months, Partner Tomás Acosta told TTR.
Projections by the International Monetary Fund indicate a fall in global GDP of between 3% and 5%, while the Bank of Spain projects a 15% contraction in Spain, Acosta noted, but these figures too are in flux, making it difficult to predict what will happen by the close of the year.
“What I do see, and this will be key, is the need for government authorities to react decisively to avoid any major resurgence,” Acosta said, noting the new outbreaks seemed to be under control, even as reported cases escalate once again.
“We are observing a window of opportunity in 2H20 in which dealmakers will try to make decisions and advance transactions before any potential new restrictions on economic activity are imposed later in the year,” Acosta added.
It won’t be until September or October that reality will set in, said Alantra Partner Alfredo Hernández, when companies will have three quarters of results to analyze. There will be a window between October and November to close deals, but the real boom will be in 1Q21, said Hernández. Alantra’s deal pipeline is stronger than it was at this point in 2019, Hernández said, but the type of deals has changed from overwhelmingly M&A-related to roughly half M&A and half financing transactions, he said.
When speaking with CEOs and CFOs, they are primarily concerned about their 2020 results, Hernández said. “The reality is that they still don’t know what the impact will be, though for those in the transportation and hospitality industries, the repercussions have been profound, and the impact is exceedingly clear,” he said.
There are already clear winners too, Hernández noted, citing the healthcare industry, certain consumer product segments and food production and distribution, which haven’t merely been resilient, they’ve growth by 20% to 30%. “All this has been made possible thanks to technology and communications, which have helped accelerate the existing trend of digitalization. “
Traditional retail, on the other hand, which was already suffering as e-commerce took at growing piece of the market, has been dealt a severe blow, Hernández noted. An acceleration of the migration online and away from brick and mortar among major retailers is a clear outcome of the current crisis, he said.
Portugal has registered a much lower toll from SARS-CoV-19 than its Iberian neighbor, with some 50,613 confirmed cases and 1,725 deaths attributed to the novel coronavirus. This hasn’t allowed the country to escape the devastating economic impacts associated with the pandemic threat, however, and the prospects for the economy are grim as the country enters peak summer holiday season, dealmakers told TTR.
“I am pessimistic about the economic outlook for Portugal,” said SLCM Managing Partner Luís Miguel Cortes Martins. “We are already seeing empty hotels; high-end restaurants also with very few clients. Many of them in fact reopened and then had to close again; that will generate a lot of unemployment and it will have a sharp impact on demand.”
The estimates for the Portuguese economy are not at all positive, Cortes Martins noted, and that will, in turn, drive away foreign investment. “I don’t see a V-shape recovery for the Portuguese economy,” he said.
“If Spain has a quick recovery, Portugal will be better off, since they are our main commercial partner,” he noted, and Portugal is also subject to the form the recovery will take across Europe, generally, especially in Germany. “Tourism is a main driver in our economy, and no one really knows when that will recover,” he said.
“I am somewhat pessimistic with regard to the economic outlook for 2021,” agreed EY Partner, Strategy and Transactions Miguel Farinha. “The pandemic’s economic impact will be greater than what most institutions, such as the IMF and the Bank of Portugal, are forecasting,” he cautioned. “Portugal will take a heavy blow, one which I think most people are not yet estimating correctly,” he said.
Portugal’s economy grew substantially in recent years, mostly thanks to its booming tourism sector, Farinha pointed out. Tourism typically represents about 15% of GDP in direct contributions and well over 20% including indirect contributions. The sudden flat line will bring severe economic hardship, he said.
Until a vaccine or some kind of treatment is made available, the downturn will persist, Farinha added. Notwithstanding his gloomy macroeconomic forecast, Farinha said the transactional market will be very strong, with a lot of very good acquisitions.
Os Estados Unidos reduziram suas aquisições em Portugal em 46% até maio
Fundos de Private Equity e Venture Capital estrangeiros reduzem seus investimentos em 75%
Montante de fusões e aquisições em Portugal aumenta 81%
Empresas estrangeiras diminuíram em 25% investimentos no setor de Tecnologia e Internet
O mercado transacional português registrou até o mês de maio 133 operações com um valor total de EUR 7,1bi, segundo o informe mensal da TTR. Isto representa um aumento de 81% do valor movimentado e uma redução de 24% no número de transações, em relação ao mesmo período de 2019.
Por sua vez, no mês de maio foram registadas 18 transações de fusões e aquisições entre anunciadas e concluídas, por um valor total de EUR 593m.
Os setor mais ativo do ano é o Imobiliário com 40 transações seguido pelo setor de Tecnologia com 20 transações até o fim de maio.
Âmbito Cross-Border
Os Estados Unidos reduziram suas aquisições em Portugal em 46%. Fundos de Private Equity e Venture Capital estrangeiros também reduziram seus investimentos em Portugal em 75%. Da mesma forma, empresas estrangeiras diminuíram em 25% seus investimentos no setor de Tecnologia e Internet em Portugal, na comparação anual.
Em relação a atuação de Portugal no exterior, Espanha é o destino favorito dos portugueses na hora de investir, com sete transações até maio. Da mesma forma, os espanhóis são os principais investidores estrangeiros em Portugal com 15 transações, seguidos pela França com 10.
Private Equity
Até maio, os fundos de Private Equity registraram EUR 806m no valor transacionado, o que representa uma redução de 15% na comparação anual. O número de transações foi 8, diminuição de 62%.
Venture Capital
Os fundos de Venture Capital movimentaram um total de EUR 106m até maio, redução de 16% em relação a 2019. Foram 24 transações, diminuição de 23%.
Transactional Impact Monitor: Spain & Portugal – Vol. 3
Posted on
Transactional Impact Monitor: Spain & Portugal – Vol. 3
27 May 2020
TTR’s Transactional Impact Monitor (TIM) is a Special Report combining local knowledge and market visibility from top dealmakers developed to address extraordinary situations affecting the macroeconomic stability and M&A outlook in core markets
INDEX
SPAIN – M&A Outlook – Private Equity – Equity Capital Markets – Handling the Crisis
PORTUGAL – M&A Outlook – Private Equity – Handling the Crisis
– The View from Milan – Dealmaker Profiles
SPAIN
As Spain approaches the 10-week mark since the royal decree was issued declaring a state of emergency on 11 March, the country has begun tiptoeing back to normalcy, or what even the government describes as the “new normal”, with a phased approach to the easing of restrictions on business activities and movement.
In phase one, which began 11 May, family members and friends are permitted to gather in groups of up to 10 persons in homes, open-air restaurants and bars, with a limit set at 50% of the normal maximum occupancy. In phase 2, which had a provisional start date of Monday, 25 May, family members will be permitted to visit their relatives in old age homes, one at a time, provided there are no Covid-19 infections among the residents. The limit on the number of persons permitted to congregate will increase to 15 and patrons will be able to sit inside restaurants and bars for table service.
Phase 3 will begin on 8 June, at the earliest, pending continued improvement in the health situation, with the government determining the pace of advancement from one phase to the next independently for each autonomous community. Once in phase three, protocols for workers to be reincorporated into the workplace will be implemented and patrons will be permitted to stand in bars once again. Travel beyond the province of residence will only be permitted after 22 June, at the earliest, and only to other regions of Spain that are in the same phase in the resumption of normal business activities.
Things are slightly better now, commented Écija Partner Emilio Prieto. “From the public health perspective, I believe the worst has passed. From an economic standpoint, however, things will be very tough for Spain,” he said.
In the tourism and hospitality industry, for example, which represents nearly 15% of Spain’s GDP, 2020 is a lost year, said Prieto, and 2021 will also be very difficult. “For the restaurant industry, where we have seen a lot of investment in recent years, the blow has obviously been nothing less than colossal,” he said. To make things worse, the new social distancing norms, which will continue to be enforced post-lockdown, will make several businesses simply inoperable, he added. “These are businesses that normally require a minimum occupancy rate of around 80% to remain viable; the owners of these establishments already know this is out of the question,” Prieto said.
Retail, leisure, hospitality and related sectors are among those suffering most, while deals in the healthcare industry, old age homes and pharmaceuticals, along with financial services, and wealth management, in particular, remain on track, according to Pinsent Masons Partner Antonio Sánchez Montero.
Regardless of what happens, Spaniards will eventually go back to restaurants and bars and those businesses will inevitably bounce back, sooner or later, Prieto said. “We are essentially gregarious people; socializing is in our nature,” he noted.
The new normal will look a lot different where the workplace environment is concerned, however, Prieto said. “The only thing we can be absolutely certain of, in the middle of all this anxiety and confusion, is that remote working is here to stay,” Prieto said.
“Why should a company pay for a five-story office in the center of Madrid when it can accommodate a portion of its employees in three floors and have the rest working remotely from home?” Prieto said. These remote workers will not only benefit from a much better work-family balance, but the cost savings involved are staggering, Prieto noted. “Some of our international clients are already moving in that direction,” Prieto said. “They have renegotiated rent prices and are now planning to sublet part of their space to other tenants and probably vacate part of the total area at the end of their contracts,” he said. Real estate will, no doubt, suffer as a result, particularly commercial space and corporate offices, Prieto noted.
Given the continuing uncertainty, it’s impossible to make foolproof macroeconomic projections for the close of 2020, but almost all the indications suggest a fall in GDP of between 7% and 12%, Prieto said.
“So the question, really, seems to be, will things be very bad or simply disastrous?” The key issue now is whether or not there will be a recovery in 2021, said Prieto. In Spain, a country heavily dependent on consumption to drive the economy, there will be economic sectors that suffer tremendously, he said.
“The legal field is privileged in that in times of prosperity, transactional work is in great demand, while in times of crisis, litigious work is in great demand. We saw it 10 years ago, and we are seeing it now,” Pinsent Masons Partner Antonio Sánchez Montero noted.
The impact of force majeure on contracts is keeping legal advisors busy at virtually every firm, he added. “This situation is so different, similar only to the situation in Spain a century ago. Nobody precisely contemplated this in their contracts; they are asking how they can amend terms they’d agreed to under completely different conditions.” Labor advisors also have their hands full amid all the legislative measures implemented to mitigate a sharp rise in unemployment in the aftermath of the lock-down, said Sánchez.
Portugal too has begun to implement a phased reactivation of the economy, though the shut down was more limited than in Spain from the outset.
We are still mandatorily working from home until the middle of June, said Abreu Advogados Partner Ana Sofia Batista. “We have this ability to adjust,” said Batista of the Portuguese and local businesses that have faced the current crisis with agility. Notwithstanding, the damage hasn’t been averted, only postponed by the government’s efforts to protect workers, tenants and provide liquidity to the market, she said. The moratorium on commercial and non-commercial rent, for example, is not forgiveness, and rents must be repaid in the first month following termination of the state of emergency.
A similar moratorium extends to companies in a borrowing relationship with the country’s commercial banks, which are in better shape than they were when the global economic crisis hit in 2008. “We think this crisis is very different,” said Batista. The impact is asymmetric, she said, noting certain sectors like energy and health were hardly impacted. “And then you have tourism,” she added, noting there were hotels that probably will be sold and groups that will eventually need to be restructured.
The substantive changes to Portugal’s labor laws and subsequent amendments gave Abreu Advogados a sizeable workload as transactional activity stalled over the past two months, Batista said. “There were very practical issues that needed to be amended and adjusted, which made our work more difficult than it should have been, but it’s natural because legislation was coming out very rapidly,” she explained.
Abreu has been running a series of webinars to keep its clients and broader business network abreast of all the new legislation being enacted. “Things are changing, not day-by-day, but almost,” she said, adding, “We anticipate that many companies will, naturally, suffer.”
Though Portugal has already begun allowing businesses to resume operations according to a phased approach similar to Spain’s, Batista said she sees a wave of restructurings in the latter part of 2020 as the moratorium providing breathing room to corporate borrowers is lifted and creditors take legal action. Judicial administrators will need to act rapidly in 4Q20 to deal with the backlog, she said.
The Special Report has sections on M&A, Private Equity and Handling the Crisis, as well as a first-hand account from Italy in The View From Milan, featuring EY Italy Managing Partner Tax & Law and Mediterranean Region Accounts Leader Stefania Radoccia.
Volume de fusões e aquisições mantém-se a cair até abril
Até o fim de abril observa-se uma redução no volume de transações no mercado português, em relação ao mesmo período de 2019.
Valor e número de transações
Segundo o mais recente relatório do TTR – Transactional Track Record, até o fim de abril de 2020, a plataforma mapeou 109 transações envolvendo empresas portuguesas, o que representa uma diminuição de 14% em relação ao mesmo período de 2019. Já no tocante ao valor total transacionado, houve uma movimentação de EUR 6,5bi, ou seja, um aumento de 87% em relação ao valor transacionado até o fim de abril de 2019. Os dados de abril reforçam a tendência de queda iniciada em fevereiro.
Setores
Com referência aos setores mais ativos, neste período podemos observar que a ordem do primeiro trimestre se mantém. Assim, o setor imobiliário continua na liderança com 37 transações, o que representa um aumento de 54% na comparação interanual. No segundo lugar, figura o setor tecnológico com 17 transações e em terceiro, encontra-se o setor de hotelaria, turismo e restaurantes com sete transações.
Transações Cross-border
O volume de aquisições realizadas por empresas norteamericanas em Portugal sofreu uma redução de 40%, porém os Estados Unidos figuram na segunda posição dos países que mais adquiriram empresas portuguesas no período. Da mesma forma, fundos de Private Equity e Venture Capital estrangeiros reduziram seus investimentos em empresas portuguesas em 67%, se comparado ao período homólogo do ano anterior.
No sentido contrário, foram mapeadas até o fim de abril, 15 transações onde empresas portuguesas realizaram aquisições no exterior. A Espanha continua sendo o destino preferido, com seis transações e EUR 751,8m movimentados. Da mesma forma, Espanha é o pais que mais adquire em Portugal com 12 operações e EUR 1,2bi transacionados no período.
Private Equity
Entre janeiro e abril foram registradas sete transações envolvendo fundos de Private Equity, o que representa uma redução de 53% no volume, em relação ao mesmo período de 2019. Já o valor movimentado teve uma aumento de 17% com EUR 806m.
Venture Capital
Já os resultados mapeados pelo TTR envolvendo fundos de Venture Capital mostram uma redução tanto en volume quanto em valor total investido. Foram 18 transações, queda de 25%, e valor total de EUR 55m, que representa redução de 47%.
O setor que mais atraiu investimento dos fundos de Venture Capital foi o de Tecnologia com 11 transações, seguido pelo setor de internet e imobiliário com duas transações cada. O fundo que mais se destacou foi o EDP Ventures que esteve envolvido em três transações.
A transação contou com a assessoria jurídica dos escritórios Cuatrecasas Portugal, Freshfields Bruckhaus Deringer e Deloitte Legal. A assessoria financeira foi realizada por Rothschild e Deloitte. A firma Llorente & Cuenca foi responsável pela assessoria de comunicação.
