HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 13
LATINAMERICA
M&A DEAL-MAKING HITS THE HEIGHTS IN 2021 BUT SLOWER GROWTH EXPECTED IN 2022
Latin America’s mid-market segment registered 85 deals worth USD 8,625m in Q4 2021, which represented a sharp fall in both volume and value compared to the previous two quarters. In terms of deal volume and value, Q4 was the third best quarter of the year. Average deal value was 14.7% lower than in Q3 2021, overall deal volume fell by 41.8% and overall deal value by 50.3% compared to the previous quarter. Compared to Q4 2020, overall deal volume declined by 8.6%, however overall deal value increased by 26.4%. There were 27 PE deals completed and overall value declined by 67.2% compared to the previous quarter. Overall PE deal value was USD 1,858m, a decline from the previous two quarters. The 27 PE transactions accounted for 21.5% of the quarter’s overall deal value. Looking at the quarter’s top 20 deals, the total value of USD 5,509m represented
63.9% of overall deal value but only 23.5% of overall deal volume. Over the last 12 months, deal volume rose from 280 in 2020 to 429 in 2021, an increase of 53.2%. Overall value climbed by 97.8%, due not only to the higher volume of deals but also the higher average deal value. KEY SECTORS AND DEALS TMT and Energy, Mining & Utilities led Q4 2021 sector activity with 32 and 14 deals respectively, accounting for approximately 54.1% of all deals closed in the period. The top two sectors were followed by Pharma, Medical & Biotech, Financial Services and Industrial & Chemicals, with eight deals each, Business Services (seven), Consumer (six) and Leisure (two). No transactions took place in the Real Estate sector. The quarter’s top 20 deals represented approximately 63.9% of all Latin America M&A activity with a total value of USD 5,509m. Brazil was the most targeted country and featured in 19 out of the top 20, representing 93.9% of the top 20’s deal value.
BIG PICTURE
• Looking at the last 12 months, deal volume increased from 280 in 2020 to 429 in 2021, a growth of 53.2%. Overall value was up 97.8%, due not only to a higher volume of deals but also a higher average value per deal • In Q4 2021, with 85 deals worth USD 8,625m, M&A volume fell compared to bothQ3 2021 andQ4 2020 • Sector activity was led by TMT (32 deals) and Energy, Mining &Utilities (14 deals) • Brazil accounted for 19 of the top 20 deals, representing 93.9%of total deal value • The Latin American economy remains one of the most impacted by COVID-19 and is struggling to recover.
PE/TRADE VOLUME &VALUE 160
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20
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0
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