The return of rising interest rates in Brazil, combined with a challenging fiscal policy, has intensified pressure on leveraged companies to pay off debts. Capital-intensive companies are the most impacted, facing higher financial costs and the need for urgent adjustments.
With bankruptcy filings at record levels, many companies are seeking to reduce leverage by selling assets. A survey by Valor Data shows that 23 of the 100 largest companies on the Brazilian stock exchange have leverage ratios above 3x EBITDA, a sign of high financial risk.
The number of companies facing difficulties is even greater when considering small and medium-sized companies, which have less room for renegotiations and face additional operational challenges due to the slowdown in some sectors caused by the macroeconomic context.
Brazilian companies and their partners can count on Volt Partners in this adverse scenario to facilitate their financial equalization through M&A operations.