ACQUIRING COMPANIES IN TIMES OF ESG AND VOLATILITY: AN OPPORTUNITY THAT DEMANDS STRATEGY

In recent months, I've spoken with several entrepreneurs seeking growth through acquisitions, but they face a new level of complexity. It's no longer enough to find a good company with solid financials and a fair valuation that aligns with the parties' objectives. Today, complying with sustainability (ESG) guidelines, navigating exchange rate volatility, interest rate recalibrations, and anticipating tax movements have become part of the game.

From my experience structuring cross-border operations, I see three themes that are setting the tone:

1. The new standard: sustainability as a strategic axis

Acquisitions that don't incorporate ESG criteria are losing appeal, especially for international funds, development banks, and certain family groups. And it's not just about reputation: integrating these factors can directly influence the cost of capital and the asset's future valuation.

2. Exchange rate and interest rates: the return of macro risk

We've returned to an environment where monetary policy decisions (in the US, Europe, and Latin America) immediately impact the profitability of an acquisition. I've seen deals stalled by abrupt exchange rate movements or a lack of adequate hedging in foreign currency debt structures.

3. Fiscal policies: more supervision, less leeway

Increases in tax burdens, increased oversight, and changes in the most recent international treaties are redefining how acquisitions are structured. Now more than ever, it is crucial to have a tax architecture that protects value and maintains operational flexibility.

What do we do?

The good news is that, with the right strategy, this environment also represents an opportunity. Many companies with high strategic value are open to receiving capital or integrating into larger groups, provided the approach is well thought out: sustainability, tax efficiency, and financial risk control.

My recommendation is, if you're considering acquiring a company, don't leave these variables to the final analysis. Integrate an ESG approach, an international tax perspective, and an efficient financial hedging strategy from the outset.

I'm convinced that the best opportunities don't disappear in difficult times... they simply change form.

If you're considering an acquisition or would like to discuss how to structure it appropriately, I'd be happy to chat.