Luis Doporto Alejandre: The mergers and acquisitions market in Mexico is modernizing.

The mergers and acquisitions market in Mexico is modernizing.

By / LUIS DOPORTO

COVID-19 significantly impacted various areas of our daily life, among these the economy, forcing changes and modernization in fields such as the mergers and acquisitions market. The market in Mexico was no exception.

 

During the height of the pandemic, there were drops in the volume of reported transactions of up to 72% compared to previous years. This was especially visible in Latin American markets. However, the Mexican market has managed to recover and become stronger and more modern.

 

The number of transactions and the total accumulated amount has grown in the current market, causing modernization in several aspects and opening a variety of investment opportunities for those who know where to look.

 

Among the clearest examples of these changes, the specialist highlighted the modernization of the signing and closing of any type of transaction. Previously, a whole conclave of lawyers, accountants, consultants, shareholders, advisors, and other specialists had to meet in person to review and sign, all the final versions of the transaction documents.

 

Currently, the trend is for those involved to sign transactions electronically and remotely, so it is no longer necessary to gather all these specialists physically in the same place. This has made possible the reduction of costs in time and resources involved in an M&A transaction.

 

The recent case of the acquisition of the Urbvan digital transportation platform by SWVL, a global provider of technology-enabled solutions for private transportation, whose headquarter is located in the United Arab Emirates. This transaction was carried out digitally, which made the process much more agile and economical.

 

In addition to innovation and modernization, the current M&A landscape has opened up a range of opportunities for those who have been able to identify and take advantage of them. The closing of many businesses and companies and the restructuring of many others in the wake of the pandemic allowed new investors to enter the market.

 

This scenario is on the rise, as many companies have been forced to adapt to the new times, and there are still several that will have to do so, so new opportunities will continue to arise for those who dare to explore them.

Continue reading: Artificial Intelligence will revolutionize avocado harvest.