HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 15
LATIN AMERICA HEAT CHART BY SECTOR
TMT
160 29% 87 16% 66 12% 60 11% 59 11% 54 10% 23 4% 20 4% 16 3%
Financial Services
Consumer
Energy, Mining & Utilities
OUTLOOK The BDO Heat Chart indicates that a total of 545 deals are announced or in progress for the region, which represents 5.4% of the Global Heat Chart. Opportunities are concentrated in TMT, Financial Services, Consumer, Energy, Mining & Utilities and Business Services with a total of 160, 87, 66, 60 and 59 predicted deals respectively.
The TMT sector also saw activity, with deal-making taking place at a local level, where transactions are focused on the acquisition of innovative software companies – especially start-ups – that can be developed globally. In relation to the Ualá transaction mentioned earlier, which is believed to be the largest private raise ever by an Argentinian company, the fintech industry has been growing steadily since the onset of the pandemic. Energy, Mining & Utilities and TMT are hot sectors where Argentina’s country risk is mitigated by the attractiveness of the sectors, where international drivers are key (such as the prices and demand for lithium) and growth is exponential with businesses operating in a fast-growing fintech sector based in technology. As long as the PASO results are confirmed in November’s elections, the expectations are that more sectors will become attractive to investors as Argentina begins implementing more market-friendly policies.
Business Services
Industrials & Chemicals
Pharma, Medical & Biotech
Leisure
Real Estate
TOTAL
545
LATIN AMERICA MID-MARKET VOLUMES BY SECTOR
2020
2021
10
53 54
83
0
5
5
7
28 9
1
1
5
5
4 34
29 29
3
7
25
23 24
32
20
57 59
58
22 5
6 19
48 9
8 43
Technology & Media
Financial Services
Energy, Mining & Utilities
Pharma, Medical & Biotech Real Estate
Consumer
Business Services
Leisure
Industrials & Chemicals
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