HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 15
LATIN AMERICA HEAT CHART BY SECTOR
TMT
127 26% 112 23% 63 13% 50 10% 48 10% 39 8%
Financial Services Business Services
Energy, Mining & Utilities
LOOKING AHEAD
Consumer
Industrials & Chemicals
Latin America represents approximately 5% of the global market with 489 deals announced or in progress, as shown in the BDO Heat Chart. TMT is expected to top the Heat Chart with 127 deals, followed by Financial Services (112), Business Services (63), Energy, Mining & Utilities (50) and Consumer (48). In 2022, considering all the previously mentioned factors, slower growth is expected for Latin America as a whole. In Brazil, although the privatization of companies has not progressed as expected in 2021, the outlook remains positive. The expectation is that the government’s share of companies will be reduced and that it will no longer be the majority shareholder. This situation will likely attract investors, from individuals to corporations. Additionally, the country’s currency devaluation is expected to attract more foreign investors eyeing cheaper assets.
Finally, it is worth highlighting that Latin American economic growth in recent months has been linked to the reopening of cities and businesses after the peak of the pandemic passed. With the region facing a new wave of COVID-19, this might yet push back recovery for some time.
Leisure
22
4%
Real Estate
14 3% 14 3%
Pharma, Medical & Biotech
TOTAL
489
LATIN AMERICA MID-MARKET VOLUMES BY SECTOR
2020
2021
ROMINA LIMA CORPORATE FINANCE AND ADVISORY PARTNER
55
125
romina.lima@bdo.com.br
5
29
4
ADRIANO CORREA CORPORATE FINANCE AND ADVISORY PARTNER
5
50
29
9
adriano.correa@bdo.com.br
24
36
43
59
77
25
27
49
58
Technology & Media
Financial Services
Energy, Mining & Utilities
Pharma, Medical & Biotech Real Estate
Consumer
Business Services
Leisure
Industrials & Chemicals
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