| Even with the current financial crisis Brazil has | | | | Brazil over the past few years and we should see |
| been able to sustain its economy, largely due to | | | | more deals by the end of this year. It is |
| its strong domestic market that has been fuelled | | | | estimated that in 2009 Private Equity participation |
| by abundant credit. | | | | on the M&A deals was nearly 35%. There |
| M&A activity in Brazil has been very slow | | | | is room in Brazil for more private equity deals, |
| since the end of 2008, with transactions for the | | | | and with low returns on investment in mature |
| first semester of 2009 following by 20% when | | | | markets we should see new PE venturing out to |
| compared to the same period of last year. | | | | Brazil next year. |
| However the drop is mainly due to a reduction in | | | | OKTOFINANCE - |
| M&A activity by Brazilian companies. Foreign | | | | The compnay is primarily focused on mergers |
| companies when compared to last year are still | | | | & acquisitions and financial advisory |
| very attracted to the Brazilian market. | | | | transactions, including joint-ventures, investments |
| We have seen a few deals this year in the IT | | | | and divestitures in various sectorsas well as |
| sector, followed by food and beverages. By the | | | | market entry strategy. From buyer and seller |
| end of the year we should see more deals in | | | | pre-deal support through to completion and |
| other sectors such as mining and infrastructure. | | | | post-deal integration. |
| A factor that possibly has had a negative impact | | | | Through its working relationships and contacts |
| on M&A activity in Brazil has been the | | | | with a wide range of financial institutions, financial |
| currency volatility over the last few months, with | | | | investors and local companies, OKTO FINANCE is |
| companies waiting for more stable exchange | | | | well placed to construct such financial strategies |
| rates before committing their investments. | | | | which best respond to its clients' needs and |
| The Private Equity sector has also been active in | | | | objectives. |