One of the key differentiators of Pacifica Advisors in the field of mergers and acquisitions (M&A) is its cross-border nature. This means that we have operations in both the United States and Mexico, as well as a multidisciplinary team on both sides of the border.
This allows us to have a broader and more comprehensive understanding of all the aspects involved in conducting transactions between both countries. It also enables us to recognize the great opportunities that arise in these types of operations. For example, the opportunity to sell at a better price than in the Mexican market, or to acquire high-value companies at a more favorable offer than in the North American market.
While the pandemic has slowed down M&A operations internationally, one of the less explored paths so far is precisely cross-border operations. From our perspective, this is where a significant opportunity lies for all sectors that have experienced a reduction in their operations in recent years.
According to data from Seale & Associates, the volume of agreements made with foreign companies in Mexico increased by 47% during 2023. In terms of numbers, the increase in mergers and acquisitions reached a value of $7.8 billion in the first four months of 2023, a 189% increase compared to $2.7 billion in the same period last year.
The overall interest of foreign companies in operating in Mexico has grown considerably. It is no longer just the United States; now, Europe and especially Asia have demonstrated that the advantages of the national territory for various industrial sectors are extremely attractive.
Despite the constantly changing global geopolitical and economic environment and the fact that the international M&A landscape has not fully recovered from the effects of the COVID-19 crisis, there is undoubtedly a hopeful outlook for trade relations between Mexico and the United States. It is necessary to take advantage of the current conditions, which will undoubtedly be beneficial for both countries.