JUE 25 DE ABRIL DE 2024 - 11:31hs.
Famous “Big Four” of international consultants

EY, PwC, Deloitte and KPMG applied to BNDES 'RFI for structuring sports betting in Brazil

Almost 40 companies from all over the world completed the Request for Information (RFI) form in the process of contracting technical services for structuring a sports betting concession project in Brazil (Fixed Quota Betting) promoted by BNDES. The limit closed the past 19th and among the interested companies appears the select and famous “Big Four” of international consultants that integrate EY, PwC, Deloitte, and KPMG. The call was really successful.

The Request for Information aims to map together with companies operating in the market relevant skills for structuring the project on screen, including:
-Structuring and economic-financial modeling of large-scale privatization projects
-Consulting in lottery and sports betting projects
-Legal advice on concession projects

Big Four is the nomenclature used to refer to the four largest accounting firms specialized in auditing and consulting in the world. Included in this select group are EY (Ernst & Young-United Kingdom), PwC (PricewaterhouseCoopers-United Kingdom), Deloitte (United States) and KPMG (Netherland).

These companies are world leaders in the sector, and they received this nickname due to this fact. Almost half of company investors say they would stop investing, or at least rethink investment in a company, if it hired an audit from a firm not belonging to the Big Four.

In the scope of future contracting, companies will be able to provide the service in a consortium way, ensuring the availability of the necessary expertise for the projects. However, filling in the RFI form will consider the individual experience of each company, and the formation of consortia to meet competencies is not analyzed at this stage.

Only companies previously identified as interested through this RFI process may be addressed, at the appropriate time, to the Request for Proposals (RFP), for participation in the following stages of the consultant selection process.

Phase 2 will be the modeling of the privatization of the public sports betting service through the analysis and conception of the legal-regulatory framework, the general structure of the regulation, the review of the legal analysis (privatization modeling), the market analysis (investors, offer and demand), business plan development, economic and financial evaluation, and legal advice. This phase will only start after the indication by the BNDES of which model of privatization of sports betting will follow, as a result of Phase 1 and decision of the granting authority.

Phase 3 will be characterized by the services required to transfer sports betting from the public to the private sector. In case of need, the contracted company must support the Tender with operations with potential investors providing the following services to BNDES: maintenance of understandings with B3 (Stock Exchange), in order to assist in the preparation of the instruction manual for the brokers and investors participating in the privatization auction; promotion and participation in technical meetings with potential investors and presentations with associations of market investors, including roadshow, in Brazil and abroad, in order to provide additional information to those contained in the notices.

Source: GMB