The local M&A growth can also be read as an indicator of confidence in the innovative potential of the country.
In a challenging regional context, Argentina is an exception: while the merger and acquisition market (M&A) in Latin America retreated in 2024, our country registered a 27% rise in the amount of operations during the first quarter of the last year, and the mobilized capital was far Duplicate, reaching 1,750 million dollars. The figures, disseminated in a report by the Global Aon PLC firm, reflect a dynamic that goes beyond the conjunctural: they point out a climate change.
The fall in inflation, the improvement in local macroeconomic indicators and the fiscal and commercial surplus are generating a more favorable environment for private investment, according to a study of Buenos Aires Capital Partners. If the deregulations promoted by the government and a decrease in the interest rate in the United States are added to that, it is expected that 2025 be even more active for the corporate transactions market in Argentina.
The local M&A growth can also be read as an indicator of confidence in the innovative potential of the country. That are the national companies themselves – the best knows the peculiarities of the Argentine context – which lead this type of movements, sends a relevant signal to the international investment community. In many cases, the behavior of local capital works as the thermometer for those who analyze investment opportunities in Argentina from abroad.
The interesting thing is not only the magnitude of the phenomenon, but its composition. Of the 95 operations registered during 2024 nationwide, many concentrated in intensive sectors of knowledge and innovation, such as technology. It is not simply buying and selling companies, but also play intangible strategic assets such as invention patents, brands, software, know-how technology or technological developments protected by industrial secret. M&A involves complex challenges related to intellectual property: the Due Diligence of intangible assets; the correct ownership of property or use rights; The risk assessment associated with litigation, or the evaluation of the strategy of patents and brands of the Target company are aspects that can decisively influence the value of an operation.
Technological disruption will continue to be one of the main engines of the global market, as the “M & A 2025” Bain & Company report warns. Generative artificial intelligence, automation, quantum computing and renewable energies are promoting many companies to transform through acquisitions. In that context, protecting innovation is not a luxury or a formality: it is a competitive differential.
Argentina has talent, technology and a renewed market dynamism. In order for this wave of operations to be sustainable over time and contribute to the economic development of the country, there is an unavoidable condition: protect innovation and bet on the growth of our ability to innovate.
Berken IP partner, a lawyer specializing in transactions and business based on innovation
Source: Ambito
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