We invite you to read the column written by our partner, Alvaro Rosenblut, where he addresses the four main challenges facing the M&A market in Chile.
The year 2025 presents for the mergers and acquisitions (M&A) market in Chile a space full of opportunities, but also of significant challenges. Along with an adequate evaluation of growth opportunities, the incorporation of new technologies and the generation of economically efficient responses to the constant regulatory changes, the ability to identify and address the obstacles that could threaten the achievement of the objectives described above, and which are naturally the main factors to consider for the success of this type of operations, is extremely crucial in these times.
Beyond the usual efforts to identify, estimate and eventually mitigate the risks inherent to any M&A operation, there are four particular challenges in the current scenario that companies will have to face and that will force them to develop the necessary capabilities to deal with them.
The first refers to technological integration and adequate data management, aspects which, although they have been fundamental in any M&A process for some time now, are now even more important. The compatibility between operating, accounting and client management systems, the migration and homologation of large volumes of information and the need to maintain operational continuity during the transition, acquire today a greater complexity than usual, in light of the new guidelines on the treatment of personal data, which are contained in a new body of legislation that will enter into force in a relatively short period of time.
Without a solid strategy, without adequate protocols and procedures, and without a thorough regulatory compliance effort, these factors can generate significant disruptions, affect the efficiency of the new combined entity and expose it to contingencies that will go from being marginal to absolutely critical.
The second major challenge lies in regulatory pressures and increasingly complex compliance. The ever-evolving and sophisticated legal environment in Chile has significantly strengthened and expanded the scope and powers of regulatory bodies in areas as diverse as social and labor security, cybersecurity, sustainability or economic crime.
The acquisition of assets, businesses or companies in Chile, therefore, demands high levels of certainty in the levels of compliance with these regulations through a thorough review of internal policies and operating practices, whose absence, deficiency or obsolescence can result in both financial penalties and irreparable damage to corporate reputation. A thorough due diligence is crucial to mitigate these risks.
Third, and in line with the evolution of the labor market and the expectations of a new generation in the workforce, aspects such as talent retention and the alignment of objectives within the company are essential to the success of an M&A process.
People are the most valuable asset in any organization and, consequently, the identification of talent, the ability to charm and retain it, as well as the implementation of tools to integrate different corporate cultures, are challenges that, if not handled properly, may result in the loss of economic value or of the eventual synergies or exponential growth that are usually pursued through this kind of transactions.
Finally, there is the adaptation to economic and geopolitical changes. The global economic context, geopolitical tensions and, in general, the definitions of the main players in the so-called trade war, undoubtedly have a significant influence on investment decisions and risk perception. Factors such as fluctuations in interest rates, inflation, imposition of tariffs and other international trade policies must be considered when planning and executing M&A transactions.
While the year 2025 presents a promising scenario for M&A in Chile, companies must be prepared to face these challenges with clear strategies and careful planning. Anticipation, adequate advice and the ability to adapt will be key to take advantage of the opportunities available and ensure the fulfillment of the objectives pursued, in this dynamic and challenging environment.
Column written by:
Álvaro Rosenblut | Partner | arosenblut@az.cl
