Episode Summary

In the wake of COVID-19, 7 Mile Advisors’ recently appointed Managing Director of the Latin America (LATAM) sector, Horacio Yenaropulos, is seeing many companies reflect on the shortcomings the pandemic revealed. In particular, many realized they were well behind in terms of digital transformation. 

As companies try to catch up, the good news is that there are new projects on the horizon.  Notably, a significant number of European companies are looking to partner with counterparts in Latin America.

Horacio, who is based in Mendoza, Argentina, hopes to combine his previous experience in financial leadership and digital transformation with his local knowledge to build bridges between these companies. 

He says it’s important to understand the different cultures in various countries within Latin America, and more broadly across the continent. For example, knowing that many Latin American companies are family-owned changes the way you do business. 

Above all, Horacio sees opportunity on both sides of the world.

“The most important goal in LATAM is to be close to the companies, the investors, and the entrepreneurs. It’s being able to share with them experiences and local knowledge, and to advise and educate them on what is going on in the market, the value drivers their businesses have, and how they can monetize all the time and effort they have been putting in in the last year,” he says.

On this episode of Deal Talk with 7MA, Horacio discusses his new role, how his background can benefit business owners, and trends across IT services within Latin America. 

💡 Featured Guest 💡

Name: Horacio Yenaropulos

What he does: Horacio combines his experience in technology services and financial leadership to serve as a Managing Director of 7MA, leading the Latin American practice. 

Organization: 7 Mile Advisors 

Words of wisdom: “It’s important for LATAM companies to have confidence in investment bankers —  like 7 Mile in this case — to help them work on the value drivers and monetize their past efforts.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode 

• COVID-19 accelerated digital transformation. As companies pivoted to meet the demands of the pandemic, many realized they were falling short digitally. They also started looking into nearshore services, and many want to partner with companies in Latin America.
• Understand the culture of companies you’re working with. A lot of Latin American companies are family-owned, and may benefit from education about the market, value drivers, and how they can monetize all their time and effort. 
• Explore the differences between LATAM countries. Chile and Uruguay are the most politically and economically stable countries in the region, but the talent pool they offer is smaller than that in Argentina, Colombia, Costa Rica and Mexico. Brazil has its own internal market and talent pool.
• Focus on what investors are looking for. Specifically, revenue growth and gross margin.

⚡ Episode Insights ⚡

[2:56] How Horacio got here: Horacio shares his background, touching on his work with Belatrix Software and other endeavors. 

[7:44] As nearshore services expand, the focus comes to Latin America: As American and European companies roll out new projects, they are looking to partner with Latin American companies. 

[11:40] How a varied work history helps: Horacio expands on his career, and explains how his varied roles help him bring a more complete professional experience to the table. 

[13:24] Establish goals with an understanding of who you’re working with: Horacio breaks down his goals for his job at the firm, while offering advice on how to understand the cultures of Latin American companies. 

[15:09] Understand that the Latin American landscape is changing: Horacio touches on various Latin American countries and discusses their talent pool size, economic stability and other important factors.   

[17:25] Ask yourself if you need a financial advisor: Before signing off, Horacio shares some advice for companies, including  assessing whether you need a financial advisor.

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Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment banking services and advice on mergers, acquisitions, and private capital transactions around the globe.

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Top quotes from the episode:

[16:49] “At this moment in time, companies are mainly focused on delivering services to the local market. They have some language constraints, but this situation is reverting. The market is looking for investors, and we expect to see many deals in the future.

[17:39] ”Always have in mind that at some point in the future you may need a financial investor. This is something that Latin companies should always have in mind.”

[17:49] “Part of the success of many of the companies we’ve been talking about was down to the fact they got an external board of advisors that was able to constantly help them refine and review the strategy of the company.”