Text by Pyr Marcondes, Senior Partner at Pipeline Capital.
With the perspective of a somewhat sluggish first semester due to the Carnival syndrome in Brazil? Yes, precisely. But why? Let me explain.
The process of selling a company can take months. Or even years.
From the day you make the effective decision to sell until the day you close the deal and receive your first down payment, the process is of medium or long term.
If you start now, you won’t sell immediately. Although a series of M&A processes are currently active, precisely now, in this early period of the year, these are negotiations that began a while back and are expected to conclude now. But if you start now, you can indeed envision selling your company at some point in 2024. Reasonable, isn’t it?
Depending on the readiness level for selling your company, that is, the stage of maturity for the M&A of your business, you may need to tidy up things before selling. And that takes months. It’s better to start soon rather than later.
If your company is more ready and mature, it’s a good time to start exploring the market, listening to potential buyers, conducting exploratory and preparatory actions, to effectively go to market in the first quarter of next year.
The later you start, the later you will actually sell, pushing the possibilities to 2025 or 2026.
And an important fact here: economies are gradually resuming their dynamics. Investors or potential strategics continue to see opportunities. They’ve held back on investments and acquisitions, but they haven’t stopped analyzing and selecting opportunities. Precisely so that, at this moment when the economy shows the first signs of recovery, they can return to making purchases.
This is already happening. Why now? For this reason.
(*) For those who say that the U.S. market expects high interest rates from the Fed in the coming months, I comment that the financial market has already factored in this projection and will continue its pace with this as a given in the spreadsheet. There’s no surprise factor. Inflation in the world’s largest market will be controlled in the coming months, and within less than a year, the country’s economy should be back on track.
Text by Pyr Marcondes, Senior Partner at Pipeline Capital.
