IDC Network

The right deal structure is key to settling negotiations in mergers and acquisitions (M&A). Pinpointing critical profit drivers requires a keen eye for gauging market interests and evaluating transactions.

For over three decades, IDC Network has been transforming and adding value to the financial sector in Central America by helping corporations and family businesses achieve their financial objectives. It is a multi-fund platform, with six verticals focused on energy and infrastructure, real estate, social impact, capital markets, private equity, and venture capital. They also leverage all this industry-specific knowledge to offer financial advisory services, supporting clients in the areas of M&A, valuations, liability restructuring, and the issuance of capital instruments in public and private markets.

Founded by Richard Aitkenhead and Miguel Fernández, IDC was established as a boutique investment bank in Guatemala during the 1990s—a time when the region lacked a market for M&A and investment banking. The company built its reputation by assisting local businesses in selling shares and forming strategic alliances. Over the years, it evolved into a comprehensive alternative asset manager, advising on more than 150 transactions at the regional level and exceeding a total value of $4 billion in assets (enterprise value).

One of IDC’s defining characteristics is its investment philosophy. Unlike many asset managers, IDC is the largest investor in most of its funds, contributing five times the industry average. This substantial investment aligns its interests with those of the client, fostering a partnership approach.

This ideology translates to understanding both buyers’ and sellers’ strategies and articulating the values sought by both parties to generate sustainable dividends over time. IDC creates win-win scenarios by identifying potential profitmaking areas and negotiating the value distribution. This in-depth analysis extends to the family dynamics and shareholder interests, ensuring that the advice secures favorable terms and mutually beneficial agreements.

In one instance, a regional company wanted expert guidance before selling a portion of its shares to a publicly traded Asian corporation. The transaction was particularly complex due to the duration of the negotiation and the involvement of numerous stakeholders. The challenge was to navigate the cultural differences between the Asian business environment and the family-owned Central American corporation. It also had to advise a family that held divergent views about the transaction.

The absence of a clearly defined timeline on the buyer’s side complicated the negotiation process. IDC took charge and assured that the parties understood the potential benefits of the proposition. IDC worked as a team and coordinated with all advisors to generate a solution for the client. It presented alternatives for the stakeholders to form an alliance and sealed the agreement in the process.
IDC embraces a “Glocal” strategy for managing cross-cultural M&A transactions. It combines global best practices with an in-depth understanding of local cultures, clients and business environments. This dual perspective allows the company to navigate the complexities of different markets effectively, ensuring its comprehensive standards are adapted to native needs.

A notable milestone for IDC was designing and securing an innovative, inclusive financial capital structure for IDC’s Infrastructure Fund, which involved a revolutionary toll road project in Guatemala. The main challenge was to incorporate a multi-lateral and commercial syndicated loan in an unconventional project structure. The team solved the issues without compromising the profitability of the project while also meeting the banks’ expectations.

IDC is set to facilitate capital flow between Latin America and developed markets like Europe and the U.S. This bidirectional strategy will cement its reputation in the industry as the partner of choice for businesses that seek impactful M&A strategies and skillful financial know-how.