M&A strategy focuses on technology and innovation
Given the negative impact the pandemic has had on the Colombian economy across all industries, it is of little surprise that interest in M&A declined since our previous survey. Of the 35% of executives in Colombia (versus 49% globally) who say they plan to actively pursue M&A in the next 12 months, more than half will be looking for bolt-on acquisitions. Strategic drivers include acquiring technology, talent and innovation, and consolidating market share.
Among Colombian executives focused on deals, half say they will be looking for targets in Colombia, and half, cross-border, with top destinations in the region including Argentina, Brazil and Peru. Half of companies in the automotive, health care, natural resources and oil-and-gas sectors intend to actively pursue acquisitions in the next year, and 75% of those in the consumer sector expect to be active.
Colombian companies seek to build resilience in response to ongoing uncertainty
Although Colombian executives appear relatively optimistic about a rebound within the next two years, general elections in 2022, a mounting fiscal deficit and the possibility of tax reform could prove disruptive for businesses and the economy.
Through disciplined portfolio reviews, and by focusing investments on digital transformation and technology, Colombian companies can build resilience and agility to resume their growth trajectory despite uncertainty ahead.