Yet, even as confidence returns, Colombian executives are keeping a close eye on the new government’s policy intentions. Proposed tax reforms, even if they may be good for business, and other policy initiatives have 38% indicating that regulatory and policy uncertainty pose the greatest near-term risks to their growth objective; 51% see this uncertainty as the biggest risk to dealmaking.
These policy uncertainties, as well as increasing trade tensions globally, have Colombian executives re-examining strategic and financial criteria more frequently; 57% indicate they review portfolios annually, and 58% are stress-testing their strategies annually or more frequently to prepare for multiple scenarios. More than three-quarters (76%) have identified assets ripe for divestment through regular portfolio reviews.
Policy uncertainties notwithstanding, Colombian executives are feeling bullish about the domestic M&A market, with 89% expecting it to improve over the next 12 months.