Economic protectionism and national security are the result of the rise of populist governments as well as geopolitical tensions. The digital sector has observed an unprecedented expansion. However, concerns over personal data have also increased. Market experts expect that increasing numbers of transactions are being put under vigilant scrutiny in different countries. This can lead to a longer deal closure loop. Under some circumstances, it can even result in the blockage of deals. Heritage Financial Advisors have identified several geopolitical trends in the markets which are impacting cross-border M&A and financing in Latam.
Cross-border M&A trends
Many cross-border M&A and financing deals await to flourish as vaccination programs roll out and economic recovery resumes in the post-COVID-19 scenario. Interest rates continue to be low and in combination with the large amounts of dry powder, private equity is playing a key role in M&A and financing in Latam. Although large corporations have significant cash reserves, many smaller business owners considering expanding to new markets lack adequate (financial) resources. The expectation is that US and European companies will lead cross-border M&A activity as usual.
Heritage Financial Advisors, with the support of Red Pacífico, helps businesses expand to new geographies and markets
Heritage belongs to Red Pacífico, an alliance of investment banks in the region that allows you to access investment opportunities, companies for sale, companies seeking to grow through acquisitions, etc. Companies venturing into cross-border M&A and financing in Latam can take advantage of our expertise. Our services help clients to strengthen their competitive position across geographies and market segments. We help new companies in their market entry strategies, provide them with financing options, create liquidity and optimize their financing costs. Heritage Financial Advisors has the expertise and resources to help find the right solution for your corporate development strategy. We assist companies by capturing value opportunities and accelerating growth through cross-border M&A transactions.