In its new blog post, Alcogal discusses the environment for mergers and acquisitions in a pandemic context
In a changing economic environment imposed by the Covid-19 pandemic, mergers and acquisitions (M&A) face new challenges in the face of economic recovery.
In her new post in Focus by Alcogal, Rita de la Guardia discusses Panama’s economic environment, a new outlook for recovery and the expectations moving forward. From a legal perspective, she explores the main challenges of the Government in order to maintain the country's reputation as a stable investment-grade economy that welcomes foreign investment.
“This high level of activity, and excess liquidity in the market, stimulate purely national M&A deals, as local companies seek strategic alliances to compete with new market conditions and new market participants, which are usually large multinationals, or to better position themselves as viable targets for future acquisitions.”, says Rita from Alcogal.
Currently, Panama is experiencing a weaker-than-expected recovery flow in sectors like tourism and consumer spending, so this may motivate acquisitions of distressed assets in the real estate, hospitality and retail sectors to be used more frequently.
“Other country-specific factors can affect business valuations and may adversely affect M&A activity, such as downgrading the credit rating of the country and certain local financial institutions, which can increase the cost of funds for companies. national transactions.”
To learn more about this topic, read the full article at www.focusalcogal.com
About Focus by Alcogal: is a digital space that informs on relevant topics of the legal sector and evidences the experience and knowledge of the firm. Focus is ideal to get up to date on the best practices in legal transactions. We periodically publish high-level content (articles and analysis), in which we address different topics of current interest with a legal perspective.
Aleman Cordero Galindo & Lee (Alcogal)
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