Dealmaking in Latin America contracted last year, with both transaction volume and aggregate value down in double-digits, according to a report from Spanish research firm TTR Data. 

Technology has proven a bright spot amid dampened activity globally, linked to factors including high interest rates in the main markets. 

In Latin America’s biggest economy, Brazil, the four subsectors with the highest number of transactions were internet, software and IT services; industry-specific software; business and professional support services; and other financial services. The technology-focused trend is seen in the other five jurisdictions, where banking & investment also ranks among the top four.

Last year political risk also played a role in Latin America: protests shook Peru, Brazil and Colombia ended electoral cycles by voting in left of center leaders, and Chileans rejected their draft constitution, easing fears over far-reaching changes. 

Dealmaking activity appears to have got off to a faster pace this year when compared with end-2022, according to Latin America M&A specialist Felipe Junqueira from insurance brokerage and professional financial services firm AON, cited in the TTR Data report.

Source: Business News Americas / BN Americas - Chile