Mexico’s mergers and acquisitions landscape has grown more sophisticated as foreign investors expand their presence and local businesses mature. Cross-border transactions have increased steadily, bringing greater opportunity but also new layers of complexity. According to the OECD, Mexico continues to record resilient inward foreign direct investment flows, reinforcing the country’s attractiveness for strategic and financial investors. Regulatory shifts, varying levels of corporate formality, and the need for cultural fluency shape how deals progress from initial interest to closing.
“Mexico presents a unique set of challenges and opportunities that require experience, local knowledge, and the right strategy,” says Sergio Garcia del Bosque, Managing Director at Seal & Associates. He’s spent decades developing a deep understanding of the country’s regulatory environment and its relationship-driven business culture, both of which play a central role in how transactions succeed. The key is engaging local expertise early.
Understanding a Regulatory Landscape That Moves Quickly
“Doing business in Mexico means understanding a dynamic regulatory framework,” he says. Antitrust approvals from COFESE, foreign investment restrictions in certain industries, and environmental permitting can reshape a transaction’s timing and structure.
“Knowing the local process and having the right relationships made the difference between delay and success,” he says. Clear visibility into permitting requirements, for example, can become essential. Companies entering Mexico frequently underestimate the number of agencies involved or the pace at which regulations shift. Early alignment with experienced legal and regulatory advisors reduces friction and helps prevent surprises that emerge late in the process.
Aligning With a Relationship-Driven Negotiation Culture
One of the key considerations in Mexico is the central role personal relationships play in moving a deal forward. “Deals in Mexico are personal. Relationships and trust are central to how business is done,” he says. Executives from the United States or Europe tend to assume that a strong proposal will stand on its own. Instead, successful negotiation in Mexico often requires patience, respect for local decision-making norms, and time invested in building credibility.
Garcia del Bosque has seen deals accelerate when trust is built early, while others have stalled the moment communication styles failed to align. These moments reveal how cultural fluency often determines deal velocity. Recognizing and adapting to these differences is not a soft skill but a decisive factor in transaction strategy.
Managing Financial Transparency and Due Diligence
Another factor to consider is that many early stage companies and family owned businesses in Mexico maintain accounting practices that differ greatly from those of global corporations. This can complicate due diligence and intensify the need for detailed analysis. “Due diligence is critical, not just to validate the numbers, but to understand underlying risks such as tax exposure or undisclosed obligations,” Garcia del Bosque says.
His team frequently employs creative structures to bridge gaps in information. Earnouts, escrows, and tailored representations and warranties help protect buyers while preserving deal viability for sellers. These tools are not only protective measures. They allow transactions to move forward when traditional structures might stall, particularly in cases where documentation is incomplete or historical reporting varies in sophistication.
Why Mexico Still Stands Out
While there are complexities to acknowledge, Garcia del Bosque sees Mexico as one of the most attractive destinations for cross-border investment, citing a growing industrial base, strategic proximity to the United States, and a resilient entrepreneurial culture as key drivers.
“Executing a successful transaction here requires more than capital. It takes local knowledge, strategic insight, and the right partners to navigate complexity and unlock value,” he says.
For leaders considering expansion into Mexico or evaluating potential targets, Garcia del Bosque’s guidance is to prepare carefully, respect the local environment, and surround yourself with advisers who understand both the technical and cultural layers of the market.
To learn more about Sergio Garcia del Bosque or connect with him, visit his LinkedIn.
