AGM Abogados ended 2019 with 18 M&A transactions, despite the international tensions and complications

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Viviane Gelpí Wenger

In 2019, the merger and acquisition market in Spain started in an accelerated way, but this pace was not maintained in the second half. According to the report by Transactional Track Record (TTR), the year ended with a decrease in the number and value of transactions, with a total of 89,764 million euros (16.4% less than in 2018) and 2,532 transactions (2.7% less than in the previous year).

It was a great year for the M&A area, with 18 transactions recorded, among others not published. The number of transactions was similar to that in the previous year, although the negotiations were perceived as more complex in 2019, where the number of uncompleted transactions increased either because there were disagreements between the parties or because the due diligence results were unsatisfactory. In line with the sector’s dynamics, AGM Abogados completed most of its transactions in the first half of the year, with a decrease in the number of completed transactions from October onwards, some of which have been extended to 2020 and are expected to be completed in the first quarter. This extension in the M&A negotiations is due to the uncertainties and conflicts in international policy (Brexit, the US-China conflict, the Iran situation, the coronavirus, etc.).

AGM Abogados expects the situation experienced in 2019 to be maintained in 2020, so the number of transactions and traded volume by 2020 year-end will be similar to that in 2019, but without the disparity seen between the first and second half of 2019. Some of the sectors that may be especially important in 2020 are: industrial, renewable energy, food and beverages, healthcare and ICT. Moreover, we expect the sector’s main driving forces to be the venture capital firms and funds, which are increasing their presence every year in the Spanish market. Despite this, the acquisitions by the industrials will continue to be significant, especially if the complex nature of the market increases their concentration needs.

Francisco Lacasa nº 15 in the Expansion Ranking

On 28 January, the Expansión newspaper published the ranking for transactions in 2019, which includes a list of the professionals with the largest number of transactions in Spain. Francisco Lacasa, the partner responsible for M&A at AGM, ranked fifteenth for the third time, with 15 transactions recorded.

AGM Abogados has a team of professionals devoted to M&A transactions, headed by Francisco Lacasa and Julio Rocafull, experts in providing advice on all types of corporate transactions, both as buyers and sellers.

Para 2020, desde AGM Abogados se espera un mantenimiento de la situación vivida el 2019, de modo que el número de operaciones y volumen negociado a final de 2020 sea similar al de 2019, pero sin la disparidad vista entre el primer y el segundo semestre de 2019. Algunos de los sectores que pueden tener especial relevancia en 2020 son: industrial, energías renovables, alimentación y bebidas, sanitario y TIC. Además, se espera que los principales promotores del sector sean las entidades y fondos de capital riesgo, que cada año toman mayor protagonismo en el mercado español. A pesar de ello las compras por industriales seguirán siendo importantes, especialmente si por las complejidades del mercado incrementan las necesidades de concentración.

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