Business Translation

Communicate effectively with partners, clients, employees, and collaborators.

Antitrust

In 2022, the Mexican Federal Economic Competition Commission intensified its surveillance over dominant economic agents in several sectors, including telecommunications and banking.

Some of the sector’s relevant events during the last months, on October 2022, the COFECE initiated an investigation procedure for monopolistic conduct within the credit cards sector due to price fixing and mechanisms to restrict competence and concurrence. Such measures engrave the Mexican government’s position toward protecting the markets.

Regarding the international sphere, the European Union is implementing material reforms to its antitrust legal framework, which is expected to impact other jurisdictions within and outside the European Union. Those entities willing to stay afloat after these structural changes must adhere efficiently, which unavoidably will affect their operations in other regions. Likewise, the upcoming presidential election in the United States of America could entail the entry of a more-protectionist administration.

There are fundamental advances in technology that materially change the antitrust sector. Namely, regulators are expected to adopt new methods to surveil the markets and detect anticompetitive conduct through big data and automated learning to obtain insights from a given market.

Therefore, the digital revolution is expected to change several markets, including the antitrust sphere, constantly. The latter will lead to a probable material market concentration in a few economic players, which could reduce the competence and lead to the imposition of higher prices to the detriment of the final consumer, particularly in those markets with high entry barriers.

We have acted as a linguistic solutions provider for diverse economic entities, translating divestitures, merger filings, regulatory submissions, compliance manuals, court filings, and transfer pricing reports.

Arbitration

As we head into 2023, alternative dispute resolution has been a popular method to solve controversies among diverse jurisdictional landscapes. Firstly, due to pandemics, corporate groups sought to enforce their agreements through the most peaceful means possible, considering the general adverse and global economic situation hitting every corner of our planet; however, the pandemic right hook to ADR systems caused court delays an unprecedented amount of ADR proceedings and increasing complexity of commercial disputes.

As to the national sphere, material changes in the Mexican legal framework have caused an increase in dispute resolution, particularly in the energy sector, which has led Mexico to be at the forefront of the most sued countries in the ADR sector. The cancellation by the Mexican government of energy-related agreements has been one of the primary triggers of this ADR claims avalanche.

Foreign investment in Mexico is oriented to ADR proceedings when solving agreements with regulators. Also, talking of general trends, technology is also a driving force in the legal industry, and 2023 will encompass the full involvement of digital hearing rooms and online ADR platforms, thus providing parties under ADR proceedings with more efficient means to solve disputes.

As to trends, diversity and inclusion will continue to play a starring role, causing a more transparent and efficient development of ADR proceedings, thus entailing parties seeking more transparent, efficient, and rationalized ADR process development; however, challenges remain, the surge of global populism and protectionism could lead in tensions in cross-border arbitration. For example, the current commercial tensions between EE.UU. and China may affect the enforceability of arbitration awards between these countries.

In general, during 2023, the ADR market is expected to remain in constant change and evolution, considering the unprecedented geopolitical factors that have arisen during the last years. Companies and legal professionals must be current on these changes to safely navigate this complex and rapidly changing panorama. At Indigo Translations, we have acted as a multilingual solutions provider in translating arbitration proceedings, arbitration agreements, arbitration awards, settlement agreements, evidence, and other ADR-related content.

Banking and finance

The banking and finance sector is passing through significant changes during 2023, guided by new technologies, the evolution of client behaviors, and newly enacted complex legal frameworks. These changes will entail both national and international implications.

In Mexico, a material event took place in 2018: enactment of the Law to Regulate Financial Technology Institutions (Ley para Regular las Instituciones de Tecnología Financiera). This legal ordinance situated Mexico at the forefront of the Fintech regulation sector. Such a law was effective through its publication in the Official Gazette of the Federation (Diario Oficial de la Federación) on March 9, 2018. This evidences the Mexican government's intention to promote innovation and offer a proper environment to develop Fintech businesses.

Regarding the international sphere, one of the main trends shaping the banking and finance sector will be the surge of Neobanks. These digital-exclusive financial entities disrupt traditional markets, offering products and services to young, tech-savvy, more demanding customers. The latter has pushed conventional financial service providers to adapt their strategies and offerings to maintain competition in this rapidly changing panorama.

Additionally, Fintech's influence and companies powered by technology are causing unprecedented disruptions in traditional financial markets, translated into greater efficiency, lesser costs, and greater access to financial services for consumers and companies. Also, as mentioned throughout this overview, as a multilingual solutions provider, sustainability and environmental, social, and governance (ESG) matters continue to gain importance in the financial and banking sector. Consideration of ASG factors on investment decisions and the adoption of sustainable and responsible practices within the corporate group’s cornerstone policies have taken paramount importance for the companies within this sector.,

Indigo Translations is mentioned as a multilingual solution provider in translating various banking-related documents, such as legal processes, regulatory filings, and loan transactions, for Neobanks, banking institutions, investment funds, law firms, and accounting firms.

Capital Markets

Mexico has been under significant changes and progress in its capital markets sector in recent years. Fintech companies' surged, and industry investment was boosted by enacting the Law to Regulate Financial Technology Institutions (Ley para Regular las Instituciones de Tecnología Financiera) in 2018. Internationally, the financial sector is constantly changing and adapting to this digital revolution, and collaboration between economic actors and fintech entities requires rapid change and resilience. Indigo Translations has a solid capital markets translation practice backed by our team’s document drafting previous experience under initial and secondary public offerings; that’s why we take pride in our more-than-translation business approach.

The continuous change toward digitalization and automatization is a trend in the capital markets. Fintech businesses and related companies leveraged by technology disrupt market customs and how financial services are rendered, thus creating new opportunities for investors and issuers. This trend tends to stay true throughout 2023, with estimated evolution in blockchain and data analysis, which, in the last instance, could model the capital markets panorama for upcoming years.

Another trend is the continuous growth of sustainable and socially responsible projects. Investors are increasingly oriented to environmental, social, and governance (ESG) businesses, and businesses are responding by imposing ESG considerations in their corporate practice and related year-end reports’ foundations. This trend is expected to continue throughout 2023 in proportion to businesses’ sophistication guided by market growth and evolution.

Despite these positive trends, some factors may impact the capital markets sphere. One of the latter could be the COVID-19 pandemic which has caused material adverse economic effects and is expected this continues throughout 2023. Another factor is the military conflict in Ukraine, which could lead to material adverse economic and geopolitical implications in case of escalation. Lastly, the rise of socialist governments throughout Latin America could entail material legislative reforms which could affect the capital markets stability for particular jurisdictions.

We continuously act as a language solutions provider for issuers, investment banks, asset managers, financial institutions, accounting firms and law firms in the translation of documents in the context of initial or secondary public offerings, prospectuses, offering memoranda, US SEC-related filings, Mexican CNBV proceedings, indentures, shareholder agreements, and investor relations, among other matters.

Compliance and Regulation

We serve many clients in finance, banking, insurance, healthcare, energy, telecommunications, and technology, among other sectors, in translating legal contracts, policies, regulatory procedures, audits, compliance procedures, and FCPA-related content. As regulatory frameworks evolve and become more complex, we expect increased translation engagements in fintech, data privacy, and healthcare.

The fast-changing digital sector is transforming the corporate panorama and compelling regulatory frameworks to adapt resiliently to a multi-geopolitical landscape. With advances such as machine learning and cloud computing, companies have access to unprecedented data, pushing them to face data privacy, security, and compliance- related challenges. The increasing interconnection of systems and globalization also implies the necessity to comply with various local and international regulations. Adopting new technologies requires a deep understanding of applicable laws and regulations, risk management, and implementing dedicated mitigation teams and controls.

Regarding domestic matters, the enactment of laws and regulations, like the Federal Law of Protection of Personal Data in Possession of Private Parties (Ley Federal de Protección de Datos Personales en Posesión de Particulares) and Law to Regulate Financial Technology Institutions (Ley para Regular las Instituciones de Tecnología Financiera) has made Mexican landscape more complex, protectionist and demanding. Also, Mexican authorities are adopting new technologies to ease compliance with tax obligations; however, technological advances pose challenges since companies must adapt with resilience to these legal changes and have dedicated teams to ensure security and full compliance.

We invite you to experience working with a business-approached multilingual solutions provider. Contact us to discuss your Project, and let us help you navigate across multijurisdictional linguistic landscapes.

Corporate

Indigo Translations offers a wide range of linguistic solutions to corporate entities, including internal communications, memoranda, and training materials, among other related content. We offer a suite of linguistic solutions in the following matters, among others:

Available solutions:

Legal corporate documents: We translate shareholders’ or partners’ meetings, board of directors’ or partners’ meetings, written resolutions, and certificates, among other legal-related content.

Corporate communications: We assist our clients in translating memoranda in mergers and acquisitions, capital markets, antitrust, finance, compliance, environmental, and real estate, among other matters.

Training materials: Employee manuals, compliance manuals, and other training materials for corporate teams.

Interpretation services: Indigo Translations offers interpretation services for meetings, conferences, and corporate events.

Energy

The Mexican energy sector experienced material hardships during the last few years. Among them is the suppression by the Mexican government of future auctions in the energy sector for foreign investors in 2018. In July 2019, Pemex, the state-owned company, refinanced part of its debt using millionaire credit agreements entered into with 23 both domestic and international financial institutions. This refinancing includes a revolving credit agreement and a term credit agreement for Pemex to use the proceeds thereof in the seventh refinery, Dos Bocas.

The Mexican government announced a new energy policy in earlies 2021 to increase domestic production and reduce importations; however, foreign investors are concerned on market stability and attractiveness due to these changes.

The construction of a new railway in the south of Mexico, better known as “Tren Maya”, has been controversial also. As part of this project, natural pipelines will also cover the energy needs across the region. Despite these measures, concerns about the possible impact on local communities and the environment have been raised.

On a global scale, the COVID-19 pandemic has materially affected the industry, but, on a regional scale, due to the North America Free Trade Agreement between Canada, the United States of America, and Mexico, which includes energy and environmental-related provisions, the Mexican government is expected to increase investment and commerce.

As seen above, the Mexican energy sector has faced several challenges within the last few years. Still, also there have been resilience efforts to address these issues and support economic growth. The following are trends that we’ve seen in our role as a multilingual solutions provider for business sectors:

Digital transformation: The energy sector is not exempted but also undergoing digital transformation. Companies are adapting machine learning and big data to perform efficient and exhaustive data analysis to optimize operations and reduce costs. These technologies allow a fluent decision-making process and improve the value chain.

Energetic transition: The transition into a low-carbon grade economy is accelerating, and the energy sector is under constant pressure to reduce carbon emissions. The tendency is that companies will invest in removable energy, like eolic and solar, and new technologies, like carbon capture and storage.

Supply chain resilience: The economic transition has highlighted the need for greater resistance in their supply chains. The companies are now oriented to diversify supply chains, reduce dependency to a sole recourse or region and improve collaboration and communication with providers and contractors.

Geopolitical risks: Geopolitical risks, such as commercial tensions, sanctions, and regional conflicts, pose a constant concern in the energy sector. Corporate groups are investing in mitigation strategies and in, diversification of operations and reduction of exposure before high-risk operations.

Changes in consumers’ preferences: Consumers require more clean and sustainable energy sources and are willing to pay more for clean products and services adjusted to their values. Energy companies are responding by investing in technologies with low carbon emissions and exploring new business models prioritizing sustainability.

We have engaged as a multilingual solutions provider for the energy sector, translating upstream, midstream, and downstream joint ventures, arbitration, concessions, and public bids.

Intellectual Property

During 2023, data privacy and cybersecurity are notable trends in the legal IP sector. With data leaks and cyber-attacks becoming more common each time, corporate groups search for state-of-the-art defense mechanisms to protect their interests in a digital era, including IP and confidential information protection against thefts and misuse. Many companies have formed dedicated teams to address data privacy and cybersecurity matters in response to this situation.

Another tendency in the intellectual property sector is protecting commercial and industrial secrets, particularly in digital commerce. Also, as emerging markets grow and become more technologically complex, so are their legal frameworks. Emerging economies that are expected to continue to undergo structural and legal reforms in several sectors are Mexico, India, China, and Brazil.

Generally, the IP sector is expected to grow steadily, directly related to technological advancements and globalization. This sector will likely continue consolidating through M&A transactions, and practices like data privacy and cybersecurity will gain more importance in the upcoming years.

Insurance

Indigo Translations constantly assists risk management, insurers, and financial and legal firms in translating insurance and reinsurance matters. Insurers are fundamental in offering risk management and insurance services to private parties, companies, and governments.

As we advance through 2023, the global insurance market will experience a constant evolution, particularly in emerging markets and innovative products. Cybernetic insurance and climate risk insurance are two areas that will undergo significant changes, boosted by an increase in insurtech companies that leverage technology to offer top-tier products and services. During the COVID-19 pandemic, the insurance sector has faced unprecedented defies, such as claims and operative disturbances; however, the industry has shown resilience in decisively responding to the crisis.

Also, representations and warranties in M&A and credit transactions, both domestic and international, have increased in practice in the last few years, offering valuable protections for all parties involved.

Emerging markets present attractive opportunities for growth in the insurance sector. To the extent economies develop, so are their insurance services and the sophistication that entails, as well as the demand for insurance in life, health, and property matters.

Litigation

Litigation-related translation services are fundamental in accessing precise and correctly localized information, mostly in cross-border litigations whereby linguistic barriers could pose hardships for the parties involved. Indigo Translations offers dynamic support in litigation matters, both domestic and international, both for law firms, corporate groups, financial entities, and private parties, in procedural document translation, such as claims, lawsuits, settlements, procedural-related writs, judgments, and evidence, among other litigation-related content.

We expect an increase in translation engagements in the following areas:

Data privacy and cybersecurity: The increasing dependency on digital technologies has increased disputes and litigations. Companies are facing unprecedented claims related to data privacy breaches, unauthorized access to confidential information, and violations of applicable legislation.

Healthcare: The healthcare sector faced a material increase in litigation for 2022, partly enhanced by the COVID-19 pandemic.

Financial services and securities: The finance sector faces strong regulatory scrutiny, encompassing litigation related to fraud, insider trading, and other financial-related crimes.

Regarding labor matters, remote work policies and mandates on vaccination represented a contingent litigation panorama for diverse economic groups. Regarding data privacy and cybersecurity, biometric data and cybersecurity will represent new challenges across the business sector.

Relying on a professional experience-backed multilingual solutions provider is important in facing complex litigation-related issues and ensuring seamless communication between authorities and parties involved.

Marketing & Advertising

We assist marketing teams in localizing diverse content, including the following:

Advertising campaigns, headlines, and slogans.

Marketing materials such as brochures and flyers.

E-commerce companies that sell products worldwide need accurate product descriptions.

Translating website content is crucial for businesses looking to expand internationally.

Press releases aim to announce new products and services, share company news, and promote events.

By translating social media content, such as posts and ads, companies can engage with their audience in different languages and effectively promote their brands.

Mergers & Acquisitions

We describe the perceptions we had during our translation practice related to the actual status of the Mergers & Acquisitions market and the trends that, in our opinion, and according to feedback by our clients, are probably to direct the upcoming landscape. Whether you are a business owner seeking to expand or an angel investor seeking to make strategic investments, this general overview offers our panorama as a multilingual linguistic solutions provider for businesses operating in multi-jurisdictional environments.

We are proud to say Indigo Translations is a leading multilingual solutions provider for business sectors leader in Mexico, particularly in M&A matters. During the last few years, we have acted as the linguistic solutions provider in some of Latin America’s most relevant banking and M&A transactions. Our team’s expertise working for several years in award-winning elite corporate law firms has undoubtedly made us the new generation of business translation providers in Mexico.

In recent years, the mergers and acquisitions market has seen several trends, including increased cross-border and digital commerce-related deals, a surge in private-equity-backed transactions, and growing interest in divestitures.

After a post-pandemic period during which companies were pushed to the limit to stay afloat, several corporate groups identified parts of their businesses they could divest. Not surprisingly, certain boards of directors have taken a particular interest in divestitures since they have been a popular means to rationalize transactions, focus on the core business, and generate cash flow for expansion, paying debt, or working capital. The global mergers and acquisitions market tends to rebound in 2023, together with a long waited post-pandemic stability collided by unexpected geopolitical factors, the rise of socialist governments in certain parts of Latin America, material regulatory reforms, and the military conflict in Ukraine, the latter of which, in case of escalade, could lead to a sudden markets collapse.

The growing interest in sustainability and ASG-related matters stands out in mergers and acquisitions in 2023. Each time, more corporate groups adopt strict policies and measures on ASG matters and operate according to such principles, recognizing the impact on the environment and society. We observe an increase in “green” deals as part of this change. Within sustainable agriculture and removable energy, investment policies are expected to focus on purposes that coincide with their values and offer synergies.

Naturally, sustainability is not the sole trend in the forthcoming landscape of mergers and acquisitions. Digitalization also holds significant importance as technology advances rapidly, making consumers more demanding and sophisticated and exhibiting rapidly evolving preferences. Boards of directors must give particular attention to including young members within their ranks to ensure a smooth transition, mitigate disruptions in brand identity stemming from generational differences, and

Some of the key documents we translate include, among others:

Stock purchase agreements

Asset purchase agreements

Investment agreements

Shareholders' agreements

Due diligence reports

Leveraged buy-out documents

Source of payment, management, and security trust agreements

Letters of intent

Non-disclosure agreements

Non-compete agreements

Shareholders' meetings or partners' meetings and resolutions

Board of directors' or board managers' meetings and resolutions

Diverse transactional document specific to each transaction

Real Estate

Considering the recent geopolitical disruptions, the real-estate sector has significantly and permanently changed globally. Commercial properties and corporate locations were permanently closed for several months, causing developers and owners to adapt to a probable new and permanent real estate sector, encompassed with new regulations, trends, usages, and consumers. Mexico City's location and infrastructure have caused it to become internationally recognized for tourism, commerce, and industry.

We are proud to say that Indigo Translations recently acted as the linguistic solutions provider for the stakeholders of one of Latin America's most ambitious sustainable tourism real estate projects located in Jalisco, Mexico, which involved the translation of several financial and legal documentation, including real estate purchase agreements, environmental and regulatory content, and financing-related instruments. In particular, this project sets a milestone in Mexico's sustainable real estate sector.

Commercially and industrially, Mexico, as an emerging economy with close relations with North America, offers investors access to a broad range of consumers while maintaining competitive labor costs. Despite this promising progress, the Mexican real estate market has challenges pending to solve, being relevant to mention Mexico City's gentrification phenomenon, whereby wealthy foreign digital nomads change their thousand-dollars rentals in Soho, Rodeo Drive, or Parisian 4th arrondissement, among other world-class destinations, for Mexico City's vibrant and its then affordable housing options. Rentals have skyrocketed in Mexico City's most exclusive neighborhoods, like Polanco, Roma, and Condesa, causing locals to pay unprecedented prices for rentals, services, and products.

As to the international market, we've seen diverse trends and evolution in our translation practice assisting developers, financial institutions, and real estate-focused corporate groups. A significant trend in the global real-estate sector is sustainability, which has taken particular importance due to climate change and energy efficiency, causing real estate developers to adopt ecological-oriented investment decisions and policies to attract more green and demanding customers, mainly in public markets where sustainability plays a key role for institutional investors' investment decisions.

Social Security & Labor

For 2023, material changes were expected in the Mexican labor and social security sector. Both private and public sectors worked jointly to implement health and security-related matters during the COVID-19 pandemic. Also, tax reforms related to vacations, labor justice, and collective bargaining agreements were implemented.

Companies adopted measures to protect their employees, like mandatory use of personal protection equipment, social distancing, and regular space disinfection. The government issued business continuity-related guidelines to ensure sound corporate continuity, providing real-time information on pandemics and promoting preventive practices.

Several provisions of the Federal Labor Law (Ley Federal del Trabajo) were amended to ensure proper vacation periods for workers. Formal workers within the private sector are entitled to a more significant mandatory vacation period, therefore searching for equilibrium between personal and labor aspects. A new labor justice system was employed by implementing conciliation centers guaranteeing procedural economy. Also, the legal pension scheme was amended to ensure financial stability during retirement.

In general, in 2023, Mexico passed structural labor changes in health, security matters, and benefits for workers.

We work closely with law firms, accounting firms, human resources teams, and senior management to translate employment contracts, golden parachutes and other officer-compensation-related agreements, labor policies and procedures, employee handbooks, application forms, and other internal documents.

Tax

The tax reform of 2022 posed six fundamental changes to improve tax management and tends to enhance national development. Among these changes, there is the creation of the Simplified Trusted Regime (Régimen Simplificado de Confianza), which tends to simplify administrative processes and reduce income tax for individuals and entities. Also, the COVID-19 pandemic poised an unprecedented increase in digital commerce, causing legislators to impose the obligation to hold a Freight (Carta Porte) for transporting goods, which, lato sensu, creates obligations to transporters related to correct and legal handling of the goods.

Also, among other relevant changes is that persons above 18 years will have an obligation to obtain Federal Contributors’ Registry (Registro Federal de Contribuyentes). Generally, these changes search to improve the State’s collection capacity and national economy, ease tax-related processes, and endure tax evasion fighting mechanisms.

Indigo Translations provides specialized tax translation services to companies in various industries, including e-commerce and retail. Our translation practice includes the following:

Tax audits: Translations of reports, accounting documents, and financial statements related to tax audits.

Transfer pricing studies: We help companies comply with tax requirements related to transfer pricing by translating related documentation such as contracts, reports, and policies, among others.

Litigation: Translation of judgments, procedural instruments, expert reports, and other relevant materials.

Other tax-related content: We translate tax returns and communications with tax authorities.

Transportation

We expect commerce between the United States and Mexico to grow constantly in 2023 due to nearshoring, which, lato sensu, means relocation of commercial operations to nearby countries instead of long distances; therefore, we expect an increase in cross-border freight volume. The latter has caused Mexico to become an attractive commercial partner and investment destination for manufacturers seeking more secure and alternative supply chains.

As a consequence of the above, we expect an increase in translation engagements in transportation matters and ancillary transactions under the relocation of production facilities.

Indigo Translations offers translation services in transportation and freight matters. We work with customs agents, legal firms, and accounting firms in translating agreements, insurance policies, freight operation manuals, custom-related documents, loading and unloading reports, and international transport documents (such as bills of lading), among other matters.

With the growth of nearshoring and the increasing importance of efficient supply chains, our translation practice facilitates clear communication and smooth operations for businesses involved in cross-border trade.

info@indigo-translations.com.mx

Avenida Presidente Masaryk #101 - 32, Colonia Polanco, Alcaldia Miguel Hidalgo, CDMX, Mexico, 11560