Performance in Mergers and Acquisitions: the challenge for law firms facing the current business environment
November 04, 2022
Our partner Luis A. Nicolau spoke to LexLatin about the most relevant aspects to be considered for a successful M&A transaction, in the midst of a complex business environment that has slowed down this type of transactions globally, due to inflation and the increase in interest rates.
In this regard, Luis commented that "...he believes that the volatility that today marks the local market due to the political uncertainty and the amendments to the regulatory regime will remain for at least two or three years, which will be challenging for the legal firms and for the banks, and will force them to choose projects that are succesfull and opportunistic, having the attention focused on the market side".
Luis also went into detail on how to achieve better results in such negotiations, highlighting that "Many times you get an extraordinary return, but you don't necessarily have a good return when indexed to dollars or euros", and stated that "Just as the buyer is expected to bring added value, it is also true that the only way to bring added value is by not interrupting the existing management if it is going well, but constantly monitoring and understanding the business..."