Technology is changing the way deals are originated | Capital & Corporate

Álvaro Mateo, coordinating partner of Gómez-Acebo & Pombo’s Mercantil practice, together with David González and Pablo Fernández Cortijo, partners of Mercantil, discuss in their interview for Capital & Corporate the significant increase in activity and acceleration in the pace of the market.

They also explain how the reactivation in the M&A market is perceived, with an emphasis on high-value deals, with investment in both traditional and technology sectors expected to remain stable. The market is experiencing a shift towards a move to sellside, “but also a preference for bilateral deals” and the revival of large deals, with continued appetite for new private equity funds.

In his words, the financial sector is looking to “consolidate its positions and optimise its operations to respond to the challenges and opportunities of the economic environment”, in addition to a clear focus on digital transformation and expansion into new markets through the diversification of its services.

On the other hand, the industry continues to face challenges such as finding alternatives to high interest rates through “more sophisticated alternatives to enable deal execution” including alternative, hybrid financing, complex corporate and co-investment structures, creative pricing formulas and reducing sellers’ liability exposure.

Read the full interview