Navigating an Emerging Market as M&A Deal Activity Continues to Rise in Latin America
We are pleased to present the first edition of our Latin America M&A Handbook. This reference provides an overview of some key legal considerations that dealmakers should keep in mind when executing deals in the jurisdictions featured here. In spite of economic volatility in recent years, Latin America saw a spike in deal activity in the first quarter of 2016, with inbound values rising 70 percent over the same period in 2015. This has been driven largely by a strong US dollar — with investors seizing opportunities to acquire assets at good prices — and the reorganization in the oil and gas sector that came about as a result of lower commodity prices.
Whether these drivers continue to fuel deal activity in the region remains to be seen. What’s clear is that Latin American markets are continuing to evolve, and offer opportunities to investors taking the long-term view. In a region as diverse as Latin America, there’s no one-size-fits-all approach to doing deals. A tailored approach with a thorough understanding of your target, the jurisdiction you invest in, the counterparties you deal with, and the local rules, business and cultural nuances that come into play — these make all the difference.
We hope you find this a useful resource as you explore M&A opportunities in the region.