Market Insights Financial Corporate Finance

Mergers and Acquisitions - Puerto Rico

Puerto Rico

The transaction value in the Mergers and Acquisitions market is projected to reach US$459.60m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 24.52% resulting in a projected total amount of US$572.30m by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$51.18m 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

Region comparison

Currency

Analyst Opinion

The Mergers and Acquisitions market in Puerto Rico is experiencing a steady increase in activity, reflecting a growing interest in strategic business combinations within the region.

Customer preferences: Companies in Puerto Rico are increasingly looking to mergers and acquisitions as a means to expand their market presence, diversify their product offerings, and achieve economies of scale. This trend is in line with global market preferences where businesses seek to enhance their competitive positions through strategic partnerships.

Trends in the market: One notable trend in the M&A market in Puerto Rico is the rise of cross-border transactions with international companies looking to enter the local market or expand their operations in the region. This trend is driven by the attractive investment opportunities in Puerto Rico, including its skilled workforce, strategic location, and favorable business environment.

Local special circumstances: Puerto Rico's unique status as a territory of the United States plays a significant role in shaping the M&A market in the region. Companies operating in Puerto Rico benefit from access to the U.S. market and regulatory framework, making it an appealing destination for foreign investors seeking opportunities in the Americas.

Underlying macroeconomic factors: The economic landscape in Puerto Rico, including factors such as tax incentives, infrastructure development, and government support for business growth, is contributing to the increasing M&A activity in the region. These factors create a conducive environment for companies to pursue strategic mergers and acquisitions as a means to drive growth and capitalize on emerging opportunities in the market.

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.