Expectations of a recovery in the global mergers and acquisitions (M&A) market are changing how Brazilian business owners prepare their companies for growth, fundraising or a potential sale. According to a projection by Morgan Stanley, global transaction volume could reach US$6.4 trillion in 2026, surpassing the all-time record set in 2021. Against this backdrop, experts at Helping Hand, a consultancy specializing in valuation and M&A, say the concept of equity is taking on a more strategic role, encouraging mid-sized companies to invest in governance, management and organizational structure to increase their market value and attract investors.
For Lucas Mendes, CEO of Helping Hand and a specialist in valuation and mergers and acquisitions for small and mid-sized companies, the shift represents an evolution in how the market assesses businesses.
“For many years, business owners focused primarily on increasing revenue. Today, investors are looking for companies capable of generating sustainable value. The wealth created by a business depends less on the size of its revenue and much more on the quality of its management, the predictability of its results and its ability to grow without relying exclusively on its founder,” Mendes said.
In Brazil, the discussion is particularly relevant given the importance of small and mid-sized businesses to the economy. According to Sebrae, these companies account for around 99% of Brazilian businesses, while data from the Ministry of Labor and Employment show that they are responsible for the majority of formal jobs in the country. Despite their economic relevance, many companies still have limited maturity in corporate governance, succession planning and strategic management, factors that directly influence valuation and can reduce their attractiveness to investors.
At the same time, experts have observed increased participation by private equity funds and strategic buyers in transactions involving family-owned businesses, driven in part by the aging profile of business owners and growing succession needs.
A study by TTR Data mapped more than 815 M&A transactions involving small and mid-sized companies in 2025, defined as businesses with annual revenue of up to R$300 million (around US$60 million). The study found that 69% of these transactions were valued at up to R$50 million (roughly US$10 million), with the largest sectors being IT Services and Software, Real Estate, and Banking.
In terms of total transaction value, the figure reached approximately R$39 billion (US$7.5 billion), representing 55% of total M&A activity in Brazil that year. These figures highlight the growing relevance of small and mid-sized companies and investor demand for them in Brazil’s M&A market.
This scenario shows a different picture from a few years ago, when M&A was largely associated with large companies. In this context, Mendes argues that preparing a company for the market is no longer a decision made only when a potential buyer appears.
“Selling a company does not start when a buyer shows up. It starts years earlier, when the owner structures processes, strengthens governance, develops leadership and creates indicators that increase market confidence. Those who build equity sell better because they reduce risk for investors,” Mendes said.
As the global M&A market regains momentum and investors become increasingly selective, experts believe equity will play a role similar to the one valuation has taken on in recent years. Rather than simply measuring how much a company is worth, the challenge is to develop the attributes that can continuously increase that value, making businesses more competitive in an environment shaped by corporate consolidation, professionalized management and greater demand for certainty and predictability in transactions.
