Canadian M&A Pacing with U.S. M&A – Record Years for Both

By Generational Equity


It has been some time since we focused on the M&A activity for our neighbors to the North. So we thought, based on some recent articles on the topic, that we would revisit it today. And frankly we are amazed at how much in demand Canadian-based businesses are. Here are just a few quotes from a recent article in the Financial Post:

Cheap debt, high valuations, and piles of cash have been spurring a mergers and acquisitions spree so far this year in Canada, with the number of deals valued at more than $1 billion far ahead of last year’s pace.

In the first five months of the year, the volume and value of mergers and acquisitions has already blown past 2020’s 586 deals at $36.2 billion during the same period and is closing in on the 2019 high of 787 deals valued at a total $94.9 billion, according to FP Data.

There’s a great deal of money that’s chasing deals and you’re seeing very competitive auction processes, and buyers are aware of that.

So just as we have discussed in recent months in the U. S., demand for Canadian deals has exploded as well. And what are these buyers focusing on? Just like in the U.S., the demand for privately held companies has never been higher.

Certainly, some of this is due to pent-up demand coming out of the severe lockdowns throughout the world in 2020. But the other reality is that professional buyers know that this is a perfect time to pick up some great assets before the economic winds change and potentially impact growth and earnings.

If you are a Canadian-based company, I would highly recommend that you contact Generational and find out when the next Growth and Exit Conference will be held in your area. Because of travel restrictions in 2020, we were limited in our ability to hold conferences north of the border.

Now that those have lessened, and thankfully the positive impact of COVID vaccinations have been seen, we are now able to hold meetings in your region again.

To learn more, call us at 972-232-1121, or visit our website, leave us your contact info and we will be in touch.

Carl Doerksen is the Director of Corporate Development at Generational Equity.

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