Developments in the M&A Sector

M&A Activity Heats Up Despite High Interest Rates

Brazil’s mergers and acquisitions (M&A) market maintained its steady upward trajectory, even amid high interest rates, exchange rate volatility, and a presidential electoral cycle on the horizon. Deal activity has centered on resilient sectors such as infrastructure, energy, life sciences, agribusiness, and technology, driven by a combination of predictable revenue streams and operational efficiency. Private equity funds are gradually returning to the market, capitalizing on more balanced valuations, while medium-sized companies expand their market presence through capitalization and corporate restructuring efforts. To navigate the more challenging environment, structures such as earn-outs and joint ventures have broadened the options available to dealmakers and helped get transactions across the finish line.

The momentum built in 2025 laid the groundwork for this progress, reinforcing more resilient sectors and boosting the performance of both private equity funds and mid-market companies. Building on that foundation, the market is moving into a cycle defined by greater structural sophistication, more rigorous diligence, and a broader focus on assets capable of delivering sustained returns in an environment that remains challenging. This trend is expected to raise the quality of transactions and improve predictability as the economic landscape shows signs of stabilizing.

Companies with strong governance, clear controls, and well-structured internal due diligence processes will have an edge over their competitors in attracting investment in an increasingly competitive M&A market

Rodrigo Arthur Carvalho

Partner – Corporate/M&A

Deal activity in the infrastructure sector (particularly regarding data centers), as well as the energy, life sciences, agriculture, and technology sectors, is expected to gain traction as private equity funds step up their involvement and sector consolidation efforts accelerate