This month’s issue of the monthly executive brief providing M&A market insight for C-level management and their professional advisors.
Third quarter Canadian M&A stats are in – and they show a sharp rise in deal value, up 41% from $38.9 billion to $54.8 billion. This is likely the result of mega-deals such as the acquisition of Shoppers Drug Mart by Loblaws for $13 billion, and the $4.9 billion deal between Brookfield Property Partners and Brookfield Office Management. The Canadian middle market has also proven to be a consistent source of deals nationally despite economic ups and downs, and we predict the mid-market will continue to define and stabilize the Canadian deal pipeline.
Interestingly, deal volume didn’t accompany the Q3 value rise, with the number of announced transactions down 6% from 627 to 587. Third quarter volume is also down 2% compared to Q3 2012.
A great wave of North American M&A deals was thought inevitable as US M&A activity was at its highest since 2008. However; the shut-down of the US government in October quickly U-turned those sentiments and thus began a season of uncertainty. One of the largest obstacles to completing deals is uncertainty – people are cautious and are hesitant to pull the trigger on deals.
Once stability in the US political environment comes, we are quite bullish on the future levels of M&A activities.
For more information contact:
Douglas Nix, CA, CPA | Vice Chairman CFA
905 845 4340 ext. 211