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Does seizing competitive advantage mean deals take center stage?

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M&A outlook<br />

Mexican companies looking outside their sectors<br />

Changes in consumer behaviors and acquiring talent has<br />

Mexican companies looking to pursue acquisitions outside of<br />

their immediate industry. When acquiring within their current<br />

sector, 25% of executives cite growing market share as their<br />

key imperative.<br />

Valuation gap grows<br />

Mexican executives see the gap between buyers and sellers as<br />

somewhat higher, with 53% saying sellers’ expectations are 10% to<br />

25% higher than those of buyers. Over the next 12 months, 44%<br />

say the gap could grow. However, a clear majority (56%) expect<br />

prices themselves to remain at current levels.<br />

Q:<br />

How do sellers’ expectations of<br />

transaction valuations currently<br />

Q: Considering the next 12 months, how do you expect the following to change?<br />

compare to those of buyers?<br />

Sellers’ expectations of transaction<br />

Percent<br />

valuations compared to those of buyers.’<br />

The price/valuation of assets<br />

3<br />

Significantly<br />

higher (25% 4<br />

Percent<br />

Percent<br />

or more)<br />

3<br />

20<br />

26<br />

Increase<br />

55<br />

Increase<br />

28<br />

Somewhat<br />

34<br />

44<br />

21<br />

higher<br />

41<br />

(10%–25%)<br />

53<br />

78<br />

64<br />

The gap<br />

is small<br />

(

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