Pursuing an international transaction in Brazil

 

The Challenge

A large U.S.-based private equity firm with significant investments in broadband providers and network infrastructure sought its first entry into international markets via the purchase of a service provider company in Brazil.

Our Approach

ASG’s team in Latin America determined that it was essential to communicate with lawmakers and regulators about the particulars of our client’s business, distinguishing it from players in the wider telecom industry that were the main targets of the proposed legislation. We moved quickly to develop messages and strategy for outreach to key executive and congressional branch stakeholders, engaging them in a dialogue around the genuine need for improved telecommunications regulation. As part of that dialogue, we explained the impact of the proposed legislative language on companies like our client. ASG also reached out through diplomatic channels to reinforce this message and deliver it to relevant government officials.

ASG's Americas team developed a bespoke analysis of Brazil's macro-political and economic history, state of play, and outlook, with a focus on local conditions in the states and regions where the company operates. We assessed market dynamics and government priorities in Brazil's telecommunications sector, in order to evaluate the market's suitability for investment, and eventually conducted discrete political and reputational diligence related to key executives in the local company.

The Result

ASG's insights gave the client confidence in its prospective investment and in the Brazilian market more broadly, leading to the successful close of a nine-figure transaction. ASG has since advised the client as they seek to expand their presence in Brazil and pursue additional investment opportunities in Latin America.