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M&As en LATAM

Posted: Sun Dec 22, 2024 8:11 am
by mstajminakter12
Introduction to M&As in LATAM
Mergers and acquisitions (M&As) are vital for the growth of the innovation ecosystem in LATAM. Companies in the technology sector are leading the way, generating a growing need for more M&As in the region. As we mentioned in our article on the future of mergers and acquisitions , these transactions can be decisive for economic development.

Current status of M&As in LATAM
The mergers and acquisitions market in Latin America has closed 2023 with a 12% drop in the number of operations, according to ttrdata.com . This decline highlights a low volume of M&As in startups compared to the US and other areas. The participation of foreign capital is notable, however, greater local involvement is needed to foster growth.

The current scenario reveals that mergers and acquisitions in LATAM are scarce. Startups have difficulties in attracting investments, which limits their development. Distrust and fear of failure are elements that influence this panorama. poland whatsapp It is essential that large companies and entrepreneurs collaborate to transform this reality and build a more solid ecosystem.

Comparison with the US and other regions
The percentage of M&As in startups in LATAM is much lower than in the US and other parts of the world. This difference restricts the momentum of the innovation ecosystem. It is essential to transform this situation to suggest a more dynamic and attractive space for investors.

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Participation of foreign investors
40 % of acquisitions in LATAM are carried out by international investors . This highlights their importance in the M&A ecosystem. However, it is necessary to promote more active participation of the local community to strengthen the sustainable growth of startups in the region.

Challenges in corporate engagement
Large companies face several obstacles when engaging with startups. One of the most significant is the negative image some have of innovation teams, often seen as financial burdens. This perception restricts both the investment and support needed to cultivate effective collaboration.