The Mexican M&A scene was buoyed in the first quarter by a string of real estate and ICT operations and the country could be looking at a strong dealmaking year if uncertainty can be reduced, according to an analyst at Transactional Track Record (TTR).
TTR recorded 85 transactions – including mergers, acquisitions, private equity, venture capital and asset acquisitions – in Q1, where 51 had disclosed deal value amounting to US$2.26bn.
Year-on-year, the results reflect only a 5% increase in the number of transactions but a 132% jump in terms of deal value.
TTR research and business analyst Marcela Chacón told BNamericas that early-year upturns in dealmaking are not uncommon, since many of the operations are valued between US$10m and US$50mn, and “usually registered as deals that might have been pending from last year.”
This upward trend could continue through the first half of the year, “as long as the market becomes clear and free of the current environment of uncertainty,” she said.
By sectors, TTR recorded the strongest dealmaking in the real estate and internet software / IT services sectors, each with 13 transactions in Q1, representing y-o-y increases of 160% and 30%, respectively.
Tech and internet-related deals have been the mainstay for growth in recent years, especially through VC operations during the pandemic years of 2020 and 2021; however, the jump in real estate, said Chacón, “is due to investor interest in purchasing non-strategic…
