In a changing economic environment imposed by the Covid-19 pandemic, mergers and acquisitions (M&A) are facing new challenges in the face of economic recovery.
— Rita de la Guardia
PANAMá, PANAMá, Feb. 1, 2022 /EINPresswire.com/ — After more than a year and a half of uncertainty, the world is finally finding the direction it lost due to the health crisis. In this sense, economic recovery efforts represent a new environment of opportunities that can lead to increased M&A transactions in 2022.
In her new post in Focus by Alcogal, Rita de la Guardia discusses Panama’s economic environment, new prospects for recovery and expectations for the future. From a legal perspective, she explores the government’s key challenges in maintaining 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 is driving purely domestic M&A deals as local companies seek strategic alliances to compete with new market conditions and new market players, who are usually large multinationals, or to better position themselves as viable targets for future acquisitions,” says Rita of Alcogal.
Currently, Panama is experiencing a weaker-than-expected recovery stream in sectors like tourism and consumer spending, which could prompt acquisitions of struggling assets in the real estate, hospitality and hospitality sectors. retail to be used more frequently.
“Other country-specific factors can affect company valuations and adversely affect M&A activity, such as the downgrading of the credit rating of the country and certain local financial institutions, which can increase the cost of funds for business domestic transactions.
To learn more about this topic, read the full article at www.focusalcogal.com
About Focus by Alcogal: is a digital space that provides information on relevant topics in the legal sector and highlights the firm’s experience and knowledge. Focus is ideal for keeping abreast of best practices in legal transactions. We periodically publish high-level content (articles and analyses), in which we address various current topics with a legal perspective.
Aleman Cordero Galindo & Lee (Alcogal)
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