At the end of November, AGM Abogados decided to open up to the Latin American market. This innovative Latam desk is led by Julio Menchaca Vite and Julio Rocafull Rodríguez, both members of the M&A team of AGM Abogados. Julio Menchaca, of Mexican origin, is a lawyer admitted to practice in Spain and Mexico, and is Head of AGM's M&A practice. In turn, Julio Rocafull, is a Partner in the M&A and Business Law area at AGM. Both have extensive experience in matters related to the Spanish and Latin American markets. 

The Impact Lawyers interviews these two lawyers to find out what has pushed the firm to venture into this valuable market.

1. What opportunities does the Latam market offer?

In AGM Abogados, we believe Latin America is a market full of opportunities. 

For foreign companies is particularly appealing its large population that allows companies to pursue significant market share, the increase in the market's consumption capacity, and the emergence of high-level professional profiles to develop their activities in these territories. On the other hand, Latin American companies are becoming very competitive and are looking to expand their businesses abroad, which allows other markets, such as the European, to attract and develop said business in their own territories, which entails economic growth, talent attraction, and the creation of new jobs.

As for Spain, we think that the Latam market is especially attractive because of the similarities in terms of language and culture, which allows for a greater degree of economic and cultural exchange.

2. Will AGM Abogados join a network of international lawyers for a better insertion in the Latam market?

AGM Abogados is already part of Lawrope, an international network with relevant presence in the Latam market. Likewise, the presence in this market for more than 25 years has allowed us to count with several partners with different areas of expertise to provide a comprehensive advice to our clients. 

3. What are the challenges of entering this new market?

Although the creation of the Latin America Desk as such is recent, we have more than 25 years of experience advising both individuals and Latin American companies in the development of their business in Spain, as well as Spanish companies with expansion plans in Latin America. Nevertheless, there will always be challenges, such as some other players with background in this market, but we are confident in the talent and work of our people and in our experience to compete at the highest level.

4. Which sectors are the most interesting at the moment in Latin America? 

Due to COVID-19, there has been an important change in the behavior of consumers in the market. Many consumers, who previously distrusted electronic commerce, have initiated themselves in the digital economy. For this reason, all those sectors related to online consumer markets are booming, such as e-commerce, delivery, marketplaces, crypto…

In addition to this, in recent years in Latin America there has been a substantial growth of companies dedicated to fintech, such as consumer banking, banking for SMEs, payments, commerce, investment media, insurance and financial infrastructure.

As for Latin American investment in Spain, the acquisition of luxury real estate products through the family offices have been very common in recent years. Likewise, sectors such as food-processing and logistics represent a great pole of attraction for the entry of new foreign investors in the Spanish market.

5. Which countries in particular will AGM Abogados focus on?

Because of various circumstances and personal relationships, the firm has always been primarily focused on countries such as Mexico, Argentina, Peru, Chile and Colombia. In fact, the oldest relationship is probably with Mexico, with whose companies and citizens it has been very comfortable for us to work. It is necessary to highlight the excellent relationship with Casa de México in Spain, as well as with the Commercial Office of the Embassy of that country. Therefore, the focus of AGM Abogados is mainly on those countries, not only because of tradition, but also because of the great network of contacts, law firms and clients, which has been developed over the years.