HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 11
LATINAMERICA
DEAL NUMBERS FALTER BUT VALUE CLIMBS
M&A mid-market activity in Latin America in Q1 2022 saw a total of 76 deals worth USD 10,122m, which represented falls of 19.1% in deal numbers and 1.6% in deal value compared with the previous quarter. In comparison with Q1 2021, the number of deals were down by 9.5% but value was up by 34.3%. However, overall the figures are not too bad considering that the average number of deals for the last five first quarters of the year is 79. The accumulated number of deals for the last 12 months was 435 deals with a value of USD 50,271m, which compares favourably with the total of 298 deals and USD 24,312m for the same period in the previous year, an increase in deal numbers of 46.0% and an increase in value of 106.8%.
Looking at the Q1 2022 figures, 26 deals worth USD 3,131m were PE transactions, representing 34.2% of the deal count and 30.9% of the quarter’s value, with an average deal value of USD 120.41m versus USD 139.83m for non-PE transactions. The average value per deal was USD 133.2m, an increase of 21.8% compared to the previous quarter. KEY DEALS AND SECTORS The quarter’s Top 20 deals totalled USD 6,530m, with Brazil leading the ranking in terms of target country with 11 deals worth USD 3,409m, followed by British Virgin Islands and Peru, each with two deals worth USD 714m and USD 640m respectively. Argentina accounted for one Top 20 deal, which was worth USD 350m in the TMT sector and was related to the acquisition of Prisma Medios de Pago S.A. Considering bidder countries, 36.9% of investments came from inside the region, with Brazil leading the ranking
BIG PICTURE
• Deal numbers fell by 9.5% but value rose by 34.2% compared toQ1 2021 • PE activity represented 34.2%of deals volume and 30.9%of deal value • Brazil led the way with 11 of the Top 20 deals worth USD 3,409mmillion • Looking ahead, 495 deals are announced or in progress, with sector activity likely to be dominated by TMT, Financial Services, Business Services and Energy, Mining &Utilities.
PE/TRADE VOLUME &VALUE 160
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14,000 16,000 18,000
140
120
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12,000
8,000 10,000 6,000 2,000 4,000
80
60
40
20
0
0
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