M&A ADVISORY · PRIVATE EQUITY
What Is M&A Advisory for Private Equity Funds in Latin America? Deal Sourcing, Diligence, and Execution
Buy-side M&A advisory helps private equity funds source deals in Latin America, backed by our founder’s full exit to Vistra.
The Startup VC sources buy-side deals in Latin American professional services, covering accounting, legal, staffing, and BPO firms. Founder Craig Dempsey co-founded Biz Latin Hub in 2014 and exited to Vistra in December 2025.
Our team runs deal sourcing, local diligence, structuring, and post-close support across Latin America. This guide shows how funds can find off-market targets and avoid common diligence surprises. It draws on hands-on experience building and selling a firm that operated across Latin America.
204
PE deals in LatAm, 2024 (TTR Data)
~75%
of companies family-owned
11 yrs
from founding to full Vistra exit
Why Do Private Equity Funds Need a Buy-Side M&A Advisor in Latin America?
Private equity funds need a buy-side advisor because deal flow in Latin America is fragmented, private, and hard to vet. Most targets are family-owned and never reach a broad auction. Funds that rely on auctioned processes compete for a small, shrinking pool. Local knowledge separates a fair price from an inherited problem.
Three problems make buy-side sourcing hard in Latin America:
| Challenge | What it means for buyers |
|---|---|
| Fragmented deal flow | Family firms own about 75% of companies, per EY and St. Gallen research, and sell privately. |
| Diligence surprises | The ILO puts regional informal employment at 46.7% in early 2025. |
| Scarce local partners | The Americas scored 42 of 100 on the 2024 Corruption Perceptions Index from Transparency International. |
TTR Data counted just 204 private-equity deals across Latin America in 2024, out of 2,904 total M&A transactions. Mergermarket shows Brazil and Mexico alone took 62% and 33% of regional private-capital investment in one 2023 quarter. That leaves strong mid-market targets under-covered in other countries.
Strong targets sit in many markets beyond Brazil and Mexico. Our Colombia M&A guide breaks down one of them.
How Do We Source Deals for Private Equity Buyers in Latin America?
We source deals by building direct relationships with founders and owners in professional-services markets across Latin America. Most targets are private and off-market. Our team finds them before they reach a formal process.
We focus on four professional-services sectors where roll-ups are gaining speed:
Accounting and tax firms
CFO Brew reports private equity now holds stakes in about 10 of the 30 largest US accounting firms. See our guide to acquiring a tax advisory firm.
Legal and compliance firms
TMF Group bought RSM Brasil BPS in January 2025, adding tax and payroll services. Read how to buy a corporate secretarial firm.
Recruitment and staffing firms
Staffing Industry Analysts put the regional staffing market above US$14 billion in 2022, growing 6-8% a year. See our guide to buying a payroll company.
Nearshore and BPO firms
Cognitive Market Research valued Latin America’s BPO market at US$14.07 billion in 2024, growing near 9% a year.
Nearshoring fuels much of this demand. Contact centers and shared-services teams keep growing to serve North American clients. That steady, dollar-linked revenue makes these firms attractive, cash-generative targets.
We run outreach built around your specific thesis. We screen each target for ownership, financials, and client concentration. You see only deals that fit your mandate, with proprietary access.
How Do You Avoid Due Diligence Surprises in Latin American Deals?
You avoid due diligence surprises by putting local specialists on the ground before you sign. Reported financials often hide real liabilities in Latin America. Local diligence finds them early, before they cost you at close.
Three issues surface most often in regional diligence:
| Risk | Why it matters |
|---|---|
| Informal payroll | Off-book staff and unpaid social security become inherited liabilities. |
| Parallel entities | Revenue and assets often sit in undisclosed related companies. |
| FX swings | EY notes Argentina’s rate jumped from about 365 to 800 pesos per dollar in December 2023. |
| Trapped cash | EY notes Argentina taxed dividend remittances at 17.5% until April 2025. |
In Mexico, INEGI reported labor informality at 54.8% of workers in early 2025. Reported headcount often understates true payroll exposure.
In Brazil, a buyer inherits the seller’s labor debts automatically. Local labor guidance warns misclassification can trigger up to five years of back social-security contributions.
How Do We Structure Deals and Manage Post-Deal Transition?
We structure deals and manage transition by keeping founders invested and aligned after close. Every deal matches our investment focus in cash-generative service firms.
What Deal Structures Bridge Valuation Gaps?
The main structures we use bridge the gap between buyer and seller price:
- Earnouts. SRS Acquiom reports these now appear in about one-third of private-target deals.
- Rollover equity. Goodwin found this in 57% of mid-market deals in 2023, keeping owners invested.
- Escrow and warranty insurance. These shift deal risk away from the buyer. The 2023 ABA study found warranty insurance in 55% of deals.
These tools let sellers share upside while you keep downside protection.
How Do You Keep Founders and Teams After Close?
You keep founders and teams by tying part of the payout to future performance. We tie earnouts to clear, measurable targets to avoid disputes later. Retention matters most in people-based firms. CB Insights found 36% of founders leave within six months of a sale.
Weak integration drives most failed deals. A 2023 Bain analysis tied 83% of failures to poor integration. We plan the first 100 days before close, and our Chile M&A guide shows how local rules shape that plan.
What Track Record Supports Our Latin America M&A Advisory?
Our track record includes founder Craig Dempsey building and exiting a professional-services firm across Latin America.
Craig Dempsey co-founded Biz Latin Hub in Bogotá, Colombia in 2014. He built it into a leading professional-services firm before focusing on The Startup VC.
Key facts from that track record:
- Full exit to Vistra. Vistra completed a full buyout of Biz Latin Hub on December 4, 2025.
- Long partnership. The deal formalized an affiliate partnership dating from 2018, per our case study of the exit.
- Regional services. The firm delivered company formation, legal, accounting, tax, and recruitment across Latin America.
We now source and vet deals in those same professional-services markets. We know the diligence traps and local rules firsthand. That experience shapes how we guide funds through regional acquisitions.
What Questions Do Private Equity Funds Ask Most Often About M&A Advisory in Latin America?
What Sectors Do You Focus On for Buy-Side Deals?
We focus on professional-services firms across Latin America. These include accounting, tax, legal, recruitment, staffing, and BPO companies. Each sector is fragmented, with many small owner-run firms. That structure makes them strong targets for roll-up strategies.
How Do You Find Off-Market Targets?
We find off-market targets by working direct founder and owner relationships. Most owners in Latin America sell privately, before any auction begins. We map each sector and reach owners early with a specific thesis. This gives our clients first access to deals other buyers never see.
What Diligence Risks Are Unique to Latin America?
The biggest risks are informal payroll, parallel entities, and currency swings. The ILO reports that about half the regional workforce is informal. That hides labor, severance, and social-security liabilities on a target’s books. Local diligence surfaces these problems before you sign and price the deal.
What Deal Sizes Do You Advise On?
We advise mid-market funds on acquisitions across Latin America. Targets are typically founder-led professional-services firms with steady cash flow. We tailor each process to the fund’s thesis and check size. Our structuring keeps founders invested through the transition.
How Long Does a Latin American Acquisition Take?
A regional acquisition usually takes several months from term sheet to close. Diligence, local counsel, and antitrust review drive the timeline. We run these workstreams in parallel to keep the process moving. Local teams in each country help avoid delays and surprises.
Do You Support Deals After Closing?
Yes, we support deals after closing. We help retain founders, staff, and clients through the first 100 days. Post-close transition protects the client relationships you paid for. We plan integration before close, because weak integration sinks most deals.
Ready to Test Your Latin America Acquisition Thesis?
The Startup VC is Craig Dempsey’s family office and company builder in Latin America. We create, back, and guide scalable ventures across the region. Our team brings buy-side sourcing, local diligence, and deal structuring built on real operating experience. Tell us your acquisition thesis, and we will help you find and close the right targets. Contact us today and select Investment Banking to start the conversation.