Market Insights Financial Corporate Finance

Mergers and Acquisitions - South America

South America

The Mergers and Acquisitions market market in South America is anticipated to achieve a transaction value of US$48.89bn by 2024.
This projection reflects a steady annual growth rate (CAGR 2024-[yeartoday]) of -6.50%, leading to a total amount of US$48.89bn by the end of 2024.
In 2024, the average transaction value in this market segment is expected to be US$136.10m.
When compared globally, it is noteworthy that the in the United States is predicted to have the highest transaction value in 2024, reaching US$1,359.00bn.
In the South American market for Mergers and Acquisitions, Brazil stands out as a dominant player due to its strong economy and large number of potential targets.

Market

Region

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Currency

Analyst Opinion

The Mergers and Acquisitions market in South America is experiencing a steady growth trajectory driven by various factors.

Customer preferences: Companies in South America are increasingly looking to expand their market presence and diversify their offerings through strategic acquisitions. This trend is fueled by a desire to gain a competitive edge, access new technologies, and enter new markets more efficiently.

Trends in the market: Brazil, as the largest economy in South America, is witnessing a surge in M&A activity across sectors such as technology, healthcare, and consumer goods. Companies in Brazil are actively seeking opportunities to consolidate their market position and drive innovation through acquisitions. On the other hand, countries like Argentina and Chile are also seeing a rise in cross-border M&A deals, particularly in industries like energy and infrastructure.

Local special circumstances: Political and economic stability play a crucial role in shaping the M&A landscape in South America. Countries with favorable business environments and clear regulatory frameworks tend to attract more investment and M&A activity. Additionally, cultural factors and local business practices can influence the negotiation process and deal structures in the region.

Underlying macroeconomic factors: The overall economic growth, foreign direct investment inflows, and industry-specific trends impact the M&A market in South America. As the region continues to recover from economic challenges and political uncertainties, companies are more inclined to pursue strategic partnerships and acquisitions to drive growth and capitalize on emerging opportunities. Additionally, currency fluctuations and trade agreements can also influence the attractiveness of M&A deals in the region.

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.