‘The M&A market in Portugal remains resilient despite the war’ (with Gustavo Ordonhas Oliveira and José Luís Moreira da Silva)

«“‘The conflict has further exacerbated the climate of uncertainty and geopolitical instability that was already being felt, which in turn is impacting and constraining M&A activity globally,’ says Gustavo Ordonhas Oliveira, a Partner at SRS Legal. The lawyer notes that “in addition to the immediate effect of rising energy costs”, “there is an anticipated risk of a potential rise in interest rates, which will entail higher financing costs for M&A transactions, as well as increased volatility in financial markets, which could hinder asset valuation and the pricing of transactions”.
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In this context, Ordonhas Oliveira of SRS agrees, “we are seeing greater caution and selectivity in the assessment of investment opportunities, notably with longer due diligence processes, greater scrutiny of cash flows and a greater focus on downside protection”.
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“The law grants vast powers to the Government, including the possibility of restricting vehicle use and rationing fuel, as well as the administrative regulation of market operators to share reserves – something we cannot even recall happening since the early days of democracy,” emphasises [José Luís] Moreira da Silva [Partner at SRS Legal]»