Cuatrecasas and Bain & Company’s Outlook explored investment dynamics and crossborder opportunities

On Thursday, June 26, Cuatrecasas and Bain & Company hosted the M&A and Private Equity Outlook at the Cuatrecasas auditorium in Lisbon. The event focused on analyzing the Portuguese M&A market from two perspectives: (i) strategic outbound mergers and acquisitions as a pathway to international expansion for Portuguese companies, and (ii) inbound investment trends and opportunities for national private equity firms.

João Rui Ferreira, Secretary of State for Economy, opened the event with remarks emphasizing the government’s vision for economic growth: “The government has a clear and ambitious vision for national economic development: to create the necessary conditions for Portugal to position itself as a key hub for international investment while facilitating the expansion of Portuguese companies in global markets.”

Mariana Norton dos Reis, co-coordinating partner of Cuatrecasas’s Corporate and M&A Practice Area, moderated a panel on inbound investment trends and opportunities for private equity in Portugal. She noted, “This conference was particularly insightful for Portuguese companies, as it provided an avenue to share knowledge on becoming global players, showcasing recent international expansion experiences achieved through major M&A operations. Moreover, it facilitated interaction between Portuguese companies and national, Iberian, and international venture capital funds, enabling them to explore existing opportunities to receive investment from this type of player while forming partnerships that foster growth, expansion and internationalization.”

Álvaro Pires, partner at Bain & Company, concluded the event, stating, “We leave with the perception that greater collaboration and engagement is needed among companies, the ‘national champions’, the investor community, and the government. There is a highly energetic and positive sentiment surrounding Portugal as a country suited for work, investment and leadership creation. Finally, we observe a strong level of maturity and sophistication in the country, inspiring confidence in national companies and investors to compete in international markets.”

João Bento, CEO of the Portuguese postal service (CTT), provided insights on outbound M&A strategies drawn from his firm’s experience. Specifically, he described the rationale behind (i) the joint venture formed at the end of last year with DHL Group in the e-commerce parcel markets in Portugal and Spain, and (ii) the acquisition of Compañia Auxiliar al Cargo Express (CACESA): “Our specific case was driven by the limitations of the Portuguese market in replacing our original business in mail services, which has been declining significantly. The Portuguese market was too small to develop a growth and value creation strategy, making expansion crucial. Since we were already operating in Spain, the aim was to leverage scale and grow within the value chain, hence the two acquisitions.”

As for inbound investment trends and opportunities for Portugal, João Coelho Borges, founding partner of Draycott, emphasized the importance of relationships: “In the Portuguese market, relationships are fundamental in private equity. The key differentiation for a local fund lies in building relationships within its own ecosystem, particularly with company founders and owners, who are often family members, to inspire confidence as a transaction partner. Similarly, fostering trust among advisors, entrepreneurs and investors is crucial. When investing abroad, we typically support the growth of Portuguese companies by acting as strategic buyers in specific sectors.”

Representing the companies present, notable speakers included Luís Rebelo da Silva, CFO of Bondalti; Rui Teixeira, CFO of EDP; and Sandra Santos, CEO of Logoplaste. Representing private equity were Gonzalo Fernandez-Albiñana, managing director and head of buyout for Spain and Portugal at Ardian; Iñigo Sanchez Asiain, founder and partner of Portobello Capital; José Maria Muñoz, founder and senior partner of MCH Private Equity; and Lars Becker, founder and partner of Henko Partners. Eduardo Ferreira de Lemos, associate partner at Bain & Company, moderated the sessions, while Luís Miguel Cortes Martins, senior partner at Cuatrecasas, delivered the opening remarks.