With slow growth, companies are looking for mergers and acquisitions

In times of crisis and fall in consumption, as now, grow organically is a challenging task for companies. In the country, to close their balance sheets with a positive balance, they have betted on acquisitions and mergers. Is that points a survey released on Monday (22) by Deloitte, which heard 211 companies.
According to the study, over the past five years, 23% of respondents bought assets of any competitor, 21% took control of other corporations, 13% sold its assets and 11% have participated in joint ventures.
The questions of the survey had multiple responses, namely: the same company may have adopted more of a strategy.
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Recently, in fact, large companies have become partners or other housewives through billion dollar transactions not only in Brazil, but worldwide.
Good examples are the acquisition of dairy area of the BRF by Parmalat by 1.8 billion, the purchase of Nokia by Alcatel-Lucent for 15.6 billion euros and the merger of Heinz with Kraft Foods, a $ 41 billion deal. All of them were closed in the first half of this year.
According to the survey, this type of operation is still in the plans of the companies. Of those surveyed, 39% intend to acquire competitors, 36% and 34% mergers aspire aims to buy assets from other organizations.
With that, they mainly seek to increase revenue (answer given by 69%), gain greater market share (66%) and enter into new niches (62%).
"While companies have caution to perform this type of operation, there is a consensus that the procurement can be an effective strategy to apply resources and gain competitiveness over competitors," said Reinaldo Grasso took from, partner at Deloitte Financial Advisory area, in a note.
Where to get money?
To finance these investments via loans and capital markets, however, looks increasingly difficult. Among the surveyed, 71% said they should raise funds through the reinvestment of profits. Only 39% bet on bank financing and 36% in loans from banks for funds.
In the same vein, although 93% of the participating companies have not publicly traded on BM & FBovespa, only 3% of the total said they intend to make an initial public offering (IPO) in 2015.
Among the reasons not to launch on the stock exchange, the most cited were the uncertainties about the Economic Outlook (27%), preparing to carry out an IPO in the next few years (22%) and the high cost for IPO (16%).
"In 2014, only two companies have listed shares on the stock exchange, picking up $ 1 billion in set. In 2015, until April, there was just one IPO, "says Grasso took from, in a note.
He recalls also that, with the exception of a slight increase in 2014, the number of companies that closed the capital stock exceeds the number of IPOs since 2007.
"This can be a sign of financial difficulties of some companies or the option to a private profile, for strategic reasons or even difference of perception between the value of the company on the stock exchange and shareholder's vision," he says. This scenario can be a reflection of the lack of liquidity of the shares ", he adds.