Mergers and acquisitions on the rise in Argentina: the importance of protecting innovation

In a challenging regional context, Argentina stands out as an exception: while the mergers and acquisitions (M&A) market in Latin America declined in 2024, our country recorded an increase of 27% in the number of operations during the first quarter of the last year, and the mobilized capital more than doubled, reaching USD 1.75 billion. The figures, published in a report by the global firm Aon plc, reflect a dynamic that goes beyond the circumstantial: they point to a change in the market outlook.

The decline in inflation, the improvement of domestic macroeconomic indicators and the fiscal and trade surplus are generating a more favorable environment for private investment, according to a study by Buenos Aires Capital Partners. If we also consider the deregulations promoted by the government and a decrease in U.S. interest rates, 2025 is expected to be an even more active year for Argentina’s corporate transactions market.

The domestic growth of M&A activity can also be interpreted as a sign of confidence in the innovative potential of the country. The fact that local companies – those most familiar with Argentina´s particular context- are leading this type of movements, sends a strong signal to the international investment community. In many cases, the behavior of the local capital works as a barometer for those assessing investment opportunities in Argentina from abroad.

What’s interesting is not just the scale of the phenomenon, but its composition. Of the 95 transactions recorded nationwide in 2024, many were concentrated in knowledge- and innovation-intensive sectors, such as technology. It’s not simply a matter of buying and selling companies—strategic intangible assets play a critical role, including patents, trademarks, software, technical know-how, or technology developments protected by trade secrets. M&A transactions involve complex challenges related to intellectual property: the due diligence of intangible assets, proper ownership of rights, the assessment of litigation risks, and the valuation of patents and trademarks are all factors that can decisively affect the value of a transaction.

Technological disruption will continue to be one of the main drivers of the global market, as highlighted in Bain & Company’s report “M&A 2025.” Generative artificial intelligence, automation, quantum computing, and renewable energies are pushing many companies to pursue transformation through acquisitions. In this context, protecting innovation is neither a luxury nor a formality: it is a competitive advantage.

Argentina has talent, technology, and a renewed market dynamism. For this wave of transactions to be sustainable over time and contribute to the country’s economic development, one condition is essential: protecting innovation and investing in the growth of our innovative capacity.