Sellers and buyers from Universidade São Judas (in negotiation) are well-versed in the business model, market size, characteristics, and opportunities.The deadlock is that the seller wants R$ 1.1 bil

Buyers typically issue debt securities or engage other sources of financing for acquisitions. In the current circumstance of interest rates and risk sentiments, creditors seek higher, solid, and liquid guarantees, charging interest rates that reflect Brazilian uncertainties and international macroeconomic uncertainties, which currently increase the cost of funding to a level that could render the buyers' Internal Rate of Return unfeasible.

Hence, buyers attempt to lower the acquisition price because financing costs are market conditions, and there aren't many options to escape them.

What buyers indicate is that paying R$ 750 million to the sellers, plus interest and guarantees provided and locked in for the benefit of creditors, could make the acquisition return and operation payback feasible.

For now, this is what we know about the potential transaction.

At Terus Consultoria, we handle M&A and fundings for acquisitions.

"Terus, intelligence, advisory, concrete cases, and decisive actions!"

Contact Terus right away: contato@terusconsultoria.com.br / (11) 2503-6747.

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