In 2015, Bradesco bank signed a deal to acquire the Brazilian HSBC branch for $5.2 billion. The deal was written in the history books as one of the biggest transactions undertaken by a Brazilian bank in the recent past. The transaction was spearheaded by none other than the president of Bradesco bank, Luiz Carlos Trabuco Cappi. The news about the acquisition quickly spread to every corner of the country like a bushfire. It left many people, including experts wondering if it was worth the risk for Bradesco bank to sign the mega-billion dollar deal.
However, in the eyes of Luiz Carlos Trabuco Cappi, one of the best banking officials in Brazil, it was the best thing that Bradesco bank has ever done. Initially, Luiz had developed a plan that would enable Bradesco bank to grow organically for the next ten years and regain its dominance in the Brazilian banking industry.
However, with the signing of the deal, Bradesco was able to grow six times ahead of its organic growth. The bank managed to increase the number of account holders, branches, and even assets to surpass that of their competitors. Since 2015, Luiz Carlos Trabuco Cappi has spent much of his time overseeing the smooth integration of HSBC bank into Bradesco.
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More details on HSBC acquisition
The deal went down in 2015 and it was between HSBC bank and Bradesco bank, the second largest lender in Latin America. According to details of the acquisition, it would enable Bradesco to boost its assets by more than 16 percent. The main challenge of the acquisition is to decide how to integrate the two banks and ensure smooth operations. At the time of acquisition, HSBC Brazil division had over five million clients. The bank also had over 281 branches spread in different parts of the country and employed over 21000 employees.
At first, it was difficult for Luiz Carlos Trabuco Cappi to convince other stakeholders that the deal was worth the money. But he successfully convinced them after presenting a complete plan that made the company enter into a 17.6 billion deal.
Before the acquisition of HSBC bank by Bradesco bank, it had begun to underperform, which the officials realized that it wasn’t profitable. The Brazilian HSBC was overstaffed and it failed to achieve significant profits. However, the acquisition will improve the performance of both banks since Luiz Carlos Trabuco Cappi has a history of turning around the performance of big companies.
By spearheading the acquisition of HSBC bank, Luiz continued to add crème to his already fat CV in the banking industry. Bradesco has almost tripled its market share to overtake their rivals and competitors, Banco Itau. Besides, his performance also earned him a name as one of the best banking leaders in Brazil.
It is for this reason that the former chairman, Mr. Lazaro Brandao appointed Luiz as his successor when he resigned from the bank towards the end of last year. Trabuco’s position as the president of Banco Bradesco president was taken over by Octavio de Lazari who previously served as the chairman of Bradesco Seguros.
Find more about Luiz Carlos Trabuco Cappi: https://oglobo.globo.com/economia/bradesco-anuncia-novo-presidente-octavio-de-lazari-junior-vai-substituir-luiz-carlos-trabuco-cappi-22365414#ixzz56wDld69g
Investing in different countries is a very risky endeavor that is only meant for those who have a high threshold for risk. For example, a country that many businessmen have been turning to is Brazil. With a growing economy that has been very positive in the recent years, this country is a great place to explore when it comes to financial sectors.
An individual who has had a chance to invest in many countries, Igor Cornelsen has narrowed some of the important tricks of the trade for those looking to follow his footsteps. The following advice reflects the opinion of this investor.
Read more on Brazilian Investment Star Igor Cornelsen Has Three Tips To Help You Retire in Florida Just Like Him:http://reporterexpert.com/brazilian-investment-star-igor-cornelsen-three-tips-help-retire-florida-just-like/
Establish a Connection with the Locals
The booming economy of Brazil has given birth to many entrepreneurs that are native to this area. According to Igor Cornelsen, one-fourth of all the population of Brazil aged 18 to 64 are businessmen. This is more than enough to create a solid group of people who have the same goals as a newcomer looking to profit. Furthermore, people from Brazil are well known for being open to new ideas and outsiders.
Know the Currency Restrictions
Brazil does not use the same currency as most of other countries in the world. This means that a foreign investor will have to exchange their funds into the local currency. The problem, however, arises when an individual tries to convert their funds to a very strict market that uses different exchange rates. Failing to do an appropriate amount of research could easily facilitate additional costs to the investor which is not the most optimal scenario.
Since Brazil’s economy is in an upright motion, the lawmakers are expectedly trying their best to keep the profits available to the locals. This means that there area heavy regulations that aim to keep people who were not from the area out of it. A potential investor should be aware of the forever-changing nature of these regulations as they will play an important role.
One of the most important things that one should do before heading over to Brazil is to get to know at least a few Brazilians. As mentioned before, besides the large business-oriented population, knowing people who are originally from the area reduces the chance of getting lost in translation. This means that people will be more likely to avoid cultural differences and grow their investment faster.
Thorough research is also important as Brazil might have one fo the most restrictive workforces in the world. Cornelsen advises people to be well acquainted the Central Bank of Brazil as this is the institution that can affect the exchange rates at any point. Ultimately, one should know that there is no free money in Brazil.