M&A’s great diagnosis for Spain’s financial health

M&A's great diagnosis for Spain's financial healthWhile 2017 was a good year for the Spanish mergers and acquisitions market, 2018 promises to be even better with many experts as Spain continues to overcome the crisis.

In the whole of the Spanish economic and business activity, mergers and acquisitions act as a barometer to measure how the country operates in financial terms.

According to TTR data, last year closed with 2,327 M&A transactions representing an 11 per cent rise on 2016.

Enrique Gutiérrez, managing partner of Deloitte’s financial advisory, says this upturn is due to the favorable economic situation and the fact that the independence tension in Catalonia has had little impact on the markets. And according to Juan Orbea, head of M&A at Banco Santander, the ultra-low rates set by the European central bank have also greatly helped.

Positive vibes

Iñaki Cobo, head of the health division of KKR in Europe, and who also works in venture capital for Spain at the same firm, has a very positive view of the market. He says the strong weight of energy companies and infrastructures, and the large role played by medium-sized family businesses with a value of between 100 and 200 million euros, are beneficial factors.

As a result of Spain’s continuing financial growth, international investors now see the country as having better developmental prospects than other European alternative markets.

Globally speaking

Across the board, experts agree that Spain shows good opportunities in which to invest. Juan Orbea, of Banco Santander, for one, expects the figures for 2017 to be surpassed, saying, ‘There are Spanish companies that have weathered the crisis well, and now many internationalization options are being considered.’

Iñaki Cobo of KKR says, ‘The discussion is based on what prices to pay, since there is very good liquidity. We have to be able to give good consideration in choosing the best investments.’

Alberto Bermejo, of Magnum Capital says, ‘Not only should there be money and appetite for investors, but also companies available to sell themselves or to incorporate new partners in their shareholding. We see companies that have improved and opened up to new financing.’

He says that in recent years, Spain has shown that its companies give very good returns, and the arrival of new investments is being experienced.

Adding his voice to the choir, Javier Torremocha, from Kibo Ventures, says, ‘There are always better opportunities, the market is improving, and investors around the world are realizing this.’

For more information, please contact corporate law firm Argali Abogados

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