Alvarez & Marsal
Alvarez & Marsal, has recently acquired Terrafirma, a Brazilian consultancy firm specializing in infrastructure projects. The move is aimed at strengthening A&M’s operations in the infrastructure segment, which already accounts for 50% of A&M’s revenue in Brazil.
With the acquisition, A&M will create a new business unit called A&M Infra, which will focus solely on infrastructure projects. The new unit will have around 550 consultants, including 30 from Terrafirma, and will be led by Marcos Ganut, who has been at A&M for five years as head of infrastructure.
Terrafirma has been in operation for 15 years and has completed over 250 projects in areas such as ports, airports, highways, and waterways. The company has also carried out technical studies for governments and the BNDES. A&M Infra, on the other hand, has about 200 projects underway in countries such as Australia, Canada, the United States, and the Middle East. The vertical already generates 30% of its revenue outside Brazil.
According to Ganut, the infrastructure sector is A&M’s big bet, despite the consultancy being best known for company restructuring. The area already represents half of the revenues in Brazil, and the goal is to triple its size over the next three years.
While A&M has gained strength in the area through the restructuring of companies involved in Operation Lava Jato and the X group, Ganut believes the real opportunity is in the structuring of infrastructure projects, which move around US$ 30 billion globally. He is optimistic about the resumption of infrastructure projects in Brazil and other emerging countries in the post-pandemic period.
A&M Infra’s client portfolio includes the world’s largest mining companies such as Vale and large construction companies. However, to accelerate the expansion, new acquisitions of consultancy firms are needed. Ganut reveals that there are two M&A processes currently in progress: one more advanced in Canada and the other in its initial phase.