Perspectives
Destination Latin America
Navigating deal complexities
By almost any measure, Latin America is an attractive market for many US companies looking for growth. A wealth of private, family-run companies, combined with strong fundamentals, such as gross domestic product (GDP) growth and consumer class expansion, makes for a high-growth environment rich in acquisition targets. Favorable trade agreements and local governments friendly to business in popular investment destinations—Brazil, Chile, Colombia, Mexico and Peru—add to the allure of the region.
Given the opportunities and the pace of change, an acquisition can be the most expedient way for a U.S. company to gain a foothold in Latin America. The familiarity and local relationships that come with an acquisition can save months of administrative work and potential frustration associated with setting up a business from scratch. First-hand knowledge of the local physical landscape is critical. Chile, for example, is considered one of the region’s best and most transparent business environments, but the country’s specific geographical footprint makes nationwide distribution a challenge.
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