Market Insights Financial Corporate Finance

Mergers and Acquisitions - Jamaica

Jamaica

The transaction value in the Mergers and Acquisitions market is projected to reach US$110.10m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 5.54% resulting in a projected total amount of US$116.20m by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$20.83m 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 Jamaica is experiencing a period of significant growth and development.

Customer preferences: Companies in Jamaica are increasingly looking to expand their market share and diversify their portfolios through strategic mergers and acquisitions. This trend is driven by the desire to enhance competitiveness, access new technologies, and capitalize on economies of scale.

Trends in the market: One prominent trend in the Jamaican M&A market is the rise of cross-border acquisitions. Local companies are seeking opportunities to acquire businesses outside of Jamaica to gain access to new markets and international expertise. Additionally, there is a growing interest in mergers and acquisitions within the tourism and hospitality sector, reflecting the importance of this industry to the Jamaican economy.

Local special circumstances: Jamaica's strategic location in the Caribbean region makes it an attractive destination for foreign investors looking to enter the market or expand their presence in the region. The country's stable political environment and pro-business policies further enhance its appeal for mergers and acquisitions. Additionally, the government's efforts to improve infrastructure and promote foreign investment have created a conducive environment for M&A activity.

Underlying macroeconomic factors: The Jamaican economy has been experiencing steady growth, driven by sectors such as tourism, mining, and agriculture. This economic stability, coupled with low inflation and a relatively stable currency, provides a favorable backdrop for mergers and acquisitions. Furthermore, the government's commitment to economic reforms and fiscal discipline has instilled confidence in investors, encouraging M&A deals 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.