Sources of information and trends
Under the radarOctober-December | 2016
Lessons from SMEs about greater expansions for challenging times
Continued investments proved to be the right path to the consistent growth of emerging companies
The traditional survey “The fastest growing SMEs in Brazil” brings, in its 11th issue, the ranking with the emerging companies with the highest growth in the Country and a survey of the major factors that contributed to the expansion process of such organizations in the challenging economic scenario.
Even with the downturn in the Brazilian economy, high growth emerging companies have increased their investments for the three consecutive years covered by the study, with a focus on optimizing processes, obtaining productivity gain and reviewing the strategic portfolio. The choice turned to areas such as technology, machinery and equipment, release of new products and services, and acquisition of other companies and assets.
Other practices listed were the diversification of business models, spread of the customer portfolio, new ways of interacting with the supply chain, different practices of risk monitoring, new ways of relating with customers and employees and alternatives for the implementation of technologies.
In spite of being strongly pressured by the exchange rate changes, and by the drop of income and increase in the customers’ delinquency rates, small and medium-sized companies maintained the debt level at the same level as the previous two years. This result indicates an adequate financial management and a good practice for risk management and market monitoring by these organizations.
To access the contents of “The fastest growing SMEs in Brazil” study in its entirety, click here
Preparation for the capital market
IPO costs require planning from the companies
The opening of capital, or IPO (Initial Public Offering), is a tool for the companies to diversify their fundraising, provide asset liquidity to its shareholders and strengthen the institutional image and management professionalism. On the other hand, the option also involves costs, especially in terms of compliance, auditing, reporting, governance and risk management.
The study “Costs for Initial Public Offerings in Brazil – An analysis of the offerings between 2005 and 2015” conducted by Deloitte in partnership with BM&F Bovespa presents a survey of the expenditures for the initial and subsequent offerings of shares, and analyzes its evolution in the last decade.
Produced based on the analysis of 198 companies with operations on the BM&F Bovespa, the report shows that, between the years 2005 and 2015, the median of total costs for an IPO was 4.8% of the amount distributed, while for the issue of a follow-on, the median recorded in the same period was 3.6%.
To access the contents of “Costs for Initial Public Offerings in BraziL” study in its entirety, click here
Internal audit: a role going through transformation
Role of the internal auditor becomes advisory and strategic
The area of internal audit in Brazil follows a global trend for changes in technology, reporting models and greater balance between the advisory and evaluation functions, as a way to enhance the value generating function to the business. This is the conclusion of the fourth issue of the survey “Internal Audit in Brazil – comparative analysis of global trends for a function in transformation” developed by Deloitte in partnership with the Institute of Internal Auditors (IIA Brazil).
The study was developed in a way that is associated with an international Deloitte’s survey, which covered more than 1,200 leaders from 29 countries of the world, and has identified a clear desire for changes in performance of the internal audit practice. A significant share (85% of the total sample and 82% of the local sample) believes that the internal audit must go through moderate or significant changes to facilitate the area’s success.
The survey also identified that companies operating in Brazil understand that the internal audit has a higher degree of influence on the executive level, in relation to the global average. It is possible, however, to note that there is a desire on the part of the respondents in both samples of a greater emphasis of this influence over the coming years, to be extended through an approach in line with the risks priorities and the organization’s strategy.
The study also revealed the interest in a more intensive application of analytics and dynamic data reporting tools, as well as the use of alternative models of people allocation.
To access the contents of “Internal Audit in Brazil” study in its entirety, click here
Corporate education remains in focus
Companies adapt training practices to the budget
In the recent economic scenario, in which companies began to rethink their short-term investments, the intention to develop corporate education projects is still growing. This is what shows the survey “Corporate Education in Brazil – Skills for a new era of knowledge”, developed by Deloitte in partnership with the DMRH Group.
In comparison to other survey conducted in 2014 on the same subject, there was a 42% increase in the quantity of organizations with teams dedicated to this practice, and a growth of 14% in the number of companies with corporate universities. In contrast, there was a decrease in the number of professionals trained by the companies with these structures, as well as the overall average training hours per professional.
The survey also indicates that on-site training increased its share compared to online training, which can strengthen the traditional formats as a solution to maintain the effectiveness of the training.
To access the contents of “Corporate Education in Brazil” study in its entirety, click here
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