Market Insights Financial Corporate Finance

Mergers and Acquisitions - Cuba

Cuba

The transaction value in the Mergers and Acquisitions market is projected to reach US$115.30m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 9.71% resulting in a projected total amount of US$126.50m by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$23.61m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

Market

Region

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Currency

Analyst Opinion

The Mergers and Acquisitions market in Cuba is experiencing a gradual but steady development.

Customer preferences: In Cuba, customers looking to engage in M&A activities often prioritize opportunities that align with the country's economic growth potential. They are inclined towards sectors that show promise for expansion and development, such as tourism, biotechnology, and renewable energy.

Trends in the market: One notable trend in the Cuban M&A market is the increasing interest from foreign investors, particularly from countries seeking to establish or strengthen diplomatic and economic ties with Cuba. This trend is driven by the country's strategic location, natural resources, and the potential for mutually beneficial partnerships.

Local special circumstances: Cuba's unique political and economic landscape plays a significant role in shaping the M&A market. The country's socialist system, combined with ongoing reforms aimed at liberalizing the economy, creates both challenges and opportunities for investors. Local regulations, government involvement in business activities, and restrictions on foreign ownership are factors that investors need to navigate when considering M&A deals in Cuba.

Underlying macroeconomic factors: The macroeconomic factors influencing the M&A market in Cuba include the country's efforts to attract foreign direct investment, improve infrastructure, and diversify its economy. These initiatives aim to stimulate growth, create employment opportunities, and enhance the overall business environment in Cuba. Additionally, external factors such as global economic trends and geopolitical developments also impact the M&A market in the country.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.