According to a KPMG report, the volume of mergers and acquisitions (M&A) involving Brazilian companies experienced a surge in the second quarter and the first half of 2024. This represents the highest quarterly number in two years, with an increase of 16.7% compared to the same period last year. The first half of 2024 concluded with 776 transactions, which is 5.3% more than in the first half of 2023.

Real per US Dollar exchange rate

Brazil also presents good entry opportunities into a BRIC country, thanks to currently favorable exchange rates, as seen in the “Real per Dollar” exchange rate graph above. Historically, the Real has often been expensive and likely overvalued. The Economist’s Big Mac Index currently indicates an over 25% undervaluation. Therefore, from an exchange rate perspective, market entry or company acquisition in Brazil can be interesting. Don’t forget, Brazil is large!

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