M&A – Mergers & Acquisitions

PROFIT operate both buy and sell sides.

• • • Non-Disclosure Agreement: to start the Project, it is necessary to sign a NDA, that guarantee the identity of our client or its confidential data will no be revealed without express permission;

    • Business Valuation: we appraise new projects and existing companies, applying the discounted cash flow method adapted to Brazilian reality, and other reference methods, such as multiples of revenues, EBITDA etc, to balance the quality of the forecasts;

    • Market research for investors or potential sellers: we search for potential interested parties to present the business opportunity;

    • Negotiation: we assist our clients through the negotiation process, coordinating the works of the legal and tax consultants, as required.

Corporate Governance

As recommended by the best practices of Corporate Governance, at least two independent members should compose the Board; in this case, one of our associates can by assuming a Board chair, as Corporate Governance and Finance expert.

In companies where the Board of Directors is still not in practice, we can help by put it into operation, creating standard reports, defining the top-bottom decision flow and chain of command and training future Board members in family owned companies.

Long Term Loans (BNDES, IFC and others)

There are two attractive options for funding new investments in Brazil, with lower interest rates than market rates. So, even companies who already have the resources to invest should consider these options, since the interest rates are lower than the cost of equity.

• • Brazilian Development Bank (BNDES): applying for BNDES resources requires a business plan adapted to the banks form and an on time follow-up of the whole process, in which PROFIT has more then 20 years of experience. The investment must be new (no change of ownership) and the client is responsible to present the collaterals required. 
  • International Finance Corporation: IFC is the World Bank’s branch for private sector funding, focusing on developing countries, also with very attractive interest rates and requiring a business plan as application.

Valuation

The valuation method, when appropriate, is generally linked to the expectation of future results, based on assumptions of growth, profitability and business risk.

The most accepted form of valuation is based on the calculation of the net present value of the expected results of the companies, that is, in the discounted cash flow (DCF). With this methodology, the goal is to obtain an initial consensus on the valuation of the business, be it in new investment projects, M&A or simply to determine the market value.

Other valuation methods are also used in a complementary way, such as CAPM (Capital Asset Pricing Model) and multiples (Revenues, EBITDA, Profits, etc.).

Corporate Diagnosis (Financial check-up)

PROFIT intends to review the financial area of its client, verifying operational policy, application and funds negotiations, bank controls, accounts receivable and payable, human resources, among others. Besides these aspects, we examined the integration of the financial area with the other sectors, as well as, indirectly, the qualification and motivation of the employees.

This activity aims to maximize the financial efficiency of companies, identifying critical points and presenting recommendations that allow the improvement of controls and the rapid attainment of relevant savings.

Corporate Finance

Many capital structures are possible, each with different levels of leverage. Even so, companies may not be maximizing their own resources.

To verify this matter, the first step is to prepare a detailed cash flow, determining the future income and disbursements, devising the best debt profile and scheme of payment.

Based on the financial information provided, we propose viable alternatives to be negotiated with banks and other credit institutions.

It is usually necessary to review the strategy after obtaining feedback from all parties involved in the negotiations.

Budget and Cash Flow

Company’s Budget is a powerful management tool that allows a comprehensive understanding of the long-term challenges, such as the economic environment and the present and potential competitors.

PROFIT has also developed a simple and efficient system to monitor and predict the company’s short-term cash flow in the Treasury level. We coach the company’s personnel to questioning its daily financial position, considering the needs of different departments at the same time.

Economics and Financial Opinions

In anti-trust and regulatory agencies process of unfair market practices, it may be required an economic opinion given by third parties.

PROFIT has experience in giving opinions to those regulatory agents in cases of mergers and acquisitions (monopoly, relevant market discussions), cartel accusations, joint ventures, and regulatory issues.

Family company

Succession is one of the main issues among family businesses, but there are other issues that are characteristic of these companies, and fortunately rely on the experience of how to act from other companies, which should be harnessed and tailored for each specific company.

PROFIT proposes to advise family companies in the scope of succession and also in the governance structure, either with the implementation of an advisory board and / or participation as an independent advisor.

Franchises

One of the possible ways to grow a business is from growth through franchises. By adopting this model, partners must have a well-structured expansion plan, with the definition of goals and strategies, and an economic and financial feasibility study to analyze the potential of the business to generate positive results.

Head Hunter

Based on our experience as financial executives, PROFIT offers a highly specialized executive research, covering financial, administrative and accounting fields for industrial, commercial, service companies, as well as banks and other financial institutions.

If you have former experience as chief financial officer or financial manager and are interested on being registered in our data bank, please send your resume within the e-mail, that is, without attachment, to curriculum@profitprojetos.com.br.

Personal Finances

Individuals and families may have issues as important as corporations and often need professional help to position themselves adequately on such complex issues as real estate and rent, fixed income and stocks, real and dollar, Brazil and abroad, long-term pension funds, life insurance or personal risk, conservative and aggressive banks, inheritances and donations, indebtedness and hedge.

PROFIT extends this advice to individuals and families, seeking to offer a particular analysis for each case, within the concept of absolute confidentiality