While Peruvian executives were awaiting the return of political stability, they have turned their attention to portfolio optimization. Although frequent portfolio reviews have become the norm in recent years as market disruptions escalate, more than a quarter (26%) of Peruvian executives say they now continuously review their portfolios to better position themselves in the marketplace. This is more than double six months ago; nearly half (49%) review their portfolios every six months or more often. For 85%, the main result of their most recent portfolio review was divesting an asset identified as underperforming or at risk for disruption.
Looking ahead, Peruvian executives expect the M&A market to continue improving. Rising confidence in pipeline activity and the ability to close deals in the next 12 months appear to underpin their optimism. An additional driver of M&A intentions in the near term, particularly for corporates, is pending regulation that would require some M&A deals, based on size or market capitalization, to receive regulatory approval before being finalized. Companies may accelerate their activities to close deals before the regulation is enacted.
As companies ramp up their M&A activity, they’ll find themselves competing with a formidable cohort of private equity players; 40% see private equity as a major acquirer of assets.