	Global M&A Trends Report
	Panama
	(Latin America/Caribbean) Firm Arias, Fábrega & Fábrega Contributors Javier Yap Endara Updated 30 Jan 2024
With respect to private M&A, what are three things on top of mind for M&A practitioners in your jurisdiction?	Three things top of mind for private M&A practitioners in Panama are: General: economic environment General: political environment Commercial: valuation expectation gaps M&A in Panama will be affected by the three main factors highlighted above. We briefly discuss the main two below: Firstly, from the economic perspective, there are various challenges on the country's horizon. One key item to monitor is the economic effects of the potential closure of the country's main exporter and material employer/taxpayer, Minera Panama (a subsidiary of First Quantum), whose mining concession agreement was struck down by the Supreme Court of Panama in 2023. In addition, experts consider that the country may soon lose its investment grade as a consequence of budgetary deficits and increasing debt. The foregoing is coupled with imminent required reforms to the public pension fund in the next 1-2 years. Nonetheless, the country continues to be an attractive investment target and hopes are that the country, as it has done in the past, will face these challenges and continue to thrive. Secondly, and although less of a risk, 2024 is an electoral year in Panama. The main contenders are all business-friendly candidates. Typically, M&A deals are not as active during an electoral year as investors and potential sellers await the results.
With respect to private M&A, where does your jurisdiction see most deal activity?	Most private M&A deal activity is categorized as mid-market.
With respect to private M&A, what sector sees the most deal activity in your jurisdiction?	Most private M&A deal activity is seen in the Financial Services sector.
What are your predictions for private M&A deal volume in your jurisdiction during 2024?	Private M&A deal volume in 2024 is predicted to be less than 2023 deal activity as it is an election year. See responses above.
With respect to public M&A, what are three things on top of mind for M&A practitioners in your jurisdiction?	Not applicable as there is limited public M&A in our jurisdiction.
With respect to public M&A, where does your jurisdiction see most deal activity?	Not applicable as there is limited public M&A in our jurisdiction.
With respect to public M&A, what sector sees the most deal activity in your jurisdiction?	Not applicable as there is limited public M&A in our jurisdiction.
What are your predictions for public M&A deal volume in your jurisdiction during 2024?	Public M&A deal volume in 2024 is predicted to be the same as 2023 activity as Panama is a small market and public M&A is not common.
Please share any other insights with respect to M&A in your jurisdiction:	Relative economic uncertainty will greatly influence M&A volume over the next 1-2 years.

Global M&A Trends Report

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With respect to private M&A, what are three things on top of mind for M&A practitioners in your jurisdiction?

Three things top of mind for private M&A practitioners in Panama are:

General: economic environment
General: political environment
Commercial: valuation expectation gaps

M&A in Panama will be affected by the three main factors highlighted above. We briefly discuss the main two below:

Firstly, from the economic perspective, there are various challenges on the country's horizon. One key item to monitor is the economic effects of the potential closure of the country's main exporter and material employer/taxpayer, Minera Panama (a subsidiary of First Quantum), whose mining concession agreement was struck down by the Supreme Court of Panama in 2023. In addition, experts consider that the country may soon lose its investment grade as a consequence of budgetary deficits and increasing debt. The foregoing is coupled with imminent required reforms to the public pension fund in the next 1-2 years. Nonetheless, the country continues to be an attractive investment target and hopes are that the country, as it has done in the past, will face these challenges and continue to thrive.

Secondly, and although less of a risk, 2024 is an electoral year in Panama. The main contenders are all business-friendly candidates. Typically, M&A deals are not as active during an electoral year as investors and potential sellers await the results.

With respect to private M&A, where does your jurisdiction see most deal activity?

Most private M&A deal activity is categorized as mid-market.

With respect to private M&A, what sector sees the most deal activity in your jurisdiction?

Most private M&A deal activity is seen in the Financial Services sector.

What are your predictions for private M&A deal volume in your jurisdiction during 2024?

Private M&A deal volume in 2024 is predicted to be less than 2023 deal activity as it is an election year. See responses above.

With respect to public M&A, what are three things on top of mind for M&A practitioners in your jurisdiction?

Not applicable as there is limited public M&A in our jurisdiction.

With respect to public M&A, where does your jurisdiction see most deal activity?

Not applicable as there is limited public M&A in our jurisdiction.

With respect to public M&A, what sector sees the most deal activity in your jurisdiction?

Not applicable as there is limited public M&A in our jurisdiction.

What are your predictions for public M&A deal volume in your jurisdiction during 2024?

Public M&A deal volume in 2024 is predicted to be the same as 2023 activity as Panama is a small market and public M&A is not common.

Please share any other insights with respect to M&A in your jurisdiction:

Relative economic uncertainty will greatly influence M&A volume over the next 1-2 years.

Global M&A Trends Report

Panama

Global M&A Trends Report

Panama

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