Cross-border M&A

RIóN has 12 years of experience in more than 40 cross-border M&A transactions. We have successfully advised our clients in over 20 countries across the world.

M&A processes in new markets can be complex in terms of financial, regulatory, political and cultural challenges, and require advisory of international quality, local knowledge and contacts with decision-makers, as well as the right resources and technical skills.

We navigate through these challenges, in collaboration with our partners in Global M&A Partners; 34 independent, top-tier investment banking firms active in more than 50 countries across five continents.

Selling or divesting a Mexican company abroad

Bringing a global perspective to the processes of a company sale or divesture can assist in attracting more bidders and thereby generate higher sales prices. RIóN advises Mexican companies in their selling processes and marketing their businesses or assets, to companies globally.

RIóN assists in the pre-sale diligence process in order to accelerate the process timeline, and maximize the probability of a successful closure.

Complicated and expensive challenges often arise when deciding which of the assets, and people, stay with the seller and which ones are transferred with the cross-border sale. RIóN provides advice on defining which assets are included in the transaction, avoiding potential pitfalls between our client and the buyer.

When dealing with foreign buyers, different cultural norms and expectations can be present. Foreign buyers may have different corporate governance regimes than the Mexican seller. Our partners in Global M&A Partners provide in-depth knowledge of local customs, business practices and negotiation dynamics to understand the buyer’s motivations, capabilities, and integration strategy; maximizing both value and deal terms.

 


Together with Global M&A Partners, we have advised on company sales in the following countries:

Germany, India, Austria, Netherlands, Argentina, Czech Republic, Italy, Norway, Chile, Peru, and Colombia.

Acquiring, or merging with, a foreign company

RIóN advises Mexican companies that seek cross-border growth by, for example, accelerating expansion where they already have operations, accessing a new customer base, obtaining new knowledge, increasing efficiencies in production, or moving into higher growth markets.

Approaching the right target internationally requires local knowledge and contacts with the right decision-makers. Our partners are boutique firms acknowledged as leaders in their respective markets. We work together on cross-border transactions to identify and engage appropriate acquisition or merger targets allowing us to assist our clients in more than 50 countries across five continents.

A correct due diligence process in a cross-border transaction is important in order to acquire the right information before decisions are made.

We know that potential cultural or linguistic differences might complicate a well-performed due-diligence. Therefore, we inspect the target firm’s headquarters, its physical locations as well as its tangible and intangible assets in order to understand them from the local perspective, before determining the target firm’s fair market value and possible, future synergies.

 


We have acquired companies in the following countries:

USA, Guatemala, Belize, Colombia, Costa Rica, El Salvador, Honduras, Nicaragua, and Panama.

Selling or divesting a foreign company in Mexico

RIóN is the most active M&A advisory firm in Mexico. We know where deals happen, who the real decision-makers are, who is buying and why, and identify which value our international clients’ assets would add. Our sales materials are founded in Mexican reality, provide clear propositions and investment thesis and focus on doable transactions. RIóN manages and executes the entire company sale and divesture process, according to an agreed timeline, and delivers clear, actionable advice.

We have advised on company sales in the following sectors:

Agribusiness, Food & Beverage, Automotive, Consumer Goods, Real Estate, Retail, Construction & Materials, Editorial, Energy, Entertainment, Pharma, Logistics, Manufacturing, Media, Business Process Outsourcing, Restaurants, Health, Financial Services, Telecom, and Textile.

 


An example from the real life

Patheon Inc., a multinational company focused on contract drug development in the pharmaceutical industry, decided to divest the Mexican operations. Operating under the Gelcaps name, it was primarily focused on manufacturing soft gel products for the Latin American market, sold under local brands, a business model which was not compatible with Patheon’s. Having acquired the Gelcaps business as a result of larger acquisition, Patheon engaged RIóN to assist them in its divestiture process, completing the sale within the stipulated timeframe and at a value above initial expectations.

Acquiring a Mexican company by a foreign company

25 years experience in the Mexican market allow us to establish an open dialogue with the target company required for a successful transaction. A key dimension of our advice is rooted in our understanding of the specific dynamics of acquisitions with Mexican corporate and family companies.

We do our best to ask the right questions and undertake the ground research in order to deliver timely information and provide an adequate quick reaction time, and we work with both management and the internal M&A team and strategic departments on location to alleviate any pressure during the transaction.

 

We have acquired companies in the following sectors:

Agribusiness, Food & Beverage, Consumer Goods, Real Estate, Construction & Materials, Oil and Gas, Energy, Entertainment, Logistics, Manufacturing, Business Process Outsourcing, Health, Financial Services, and Telecom.

 


Another example from the real life

RIóN advised Grupo Carvajal, one of the oldest and largest companies in Colombia, throughout the acquisition process of Convermex (Mexico), the third largest global producer of styrofoam cups.

Grupo Carvajal had decided to enter into the packaging business, forming the Carvajal Empaques division with presence in several countries in Central and South America.

Under a competitive bidding process with very tight deadlines, RIóN valued Convermex, structured the preliminary acquisition offer, as well as the final offer which ultimately became the winning bid with a transaction value of USD 180m.

Sign up for our newsletter

For the last 10 years at RIóN we have gathered all publicly known M&A information in Mexico and have prepared brief and light summaries for you to enjoy and keep updated on M&A activity every month. We look forward to constantly improve our Newsletter and welcome your deals, news, and feedback.