Overall Canadian M&A remained healthy in terms of deal volumes
Looking at the number of Canada's mergers and acquisitions (M&A) in the first three quarters of the year, it may seem like the industry is doing extremely well.
PwC Canada, in its first Deals report, noted that the Canada M&A space had been busy in the said quarters, with deal volumes rising from 1,522 during the same period last year to 1,879. However, deal value has taken a slight dip, given the fewer mega-deals compared to last year.
During the said period, private equity firms reflected an active participation in the M&A space. Their activity has increased by 40% in volume of buy-side and sell-side deals. For those with disclosed value, more than half (52%) are in the $50 million - $1 billion range.
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Meanwhile, the largest outbound destination of these M&A deals is to the United States, with a 27% growth in deal volume from 245 to 310. Technology and real estate sectors helped boost outbound deals to the US.
In the technology space, a strong showing was seen in deals relating to IT services and consulting. As for the real estate sector, development and operations businesses saw robust deal activity, while real estate services were flat.
PwC Canada national deals leader Dave Planques said the boost in deal volume in 2017 makes for interesting analysis.
"The strong North American economy and large pools of capital to invest contribute to a very active deal market in Canada despite the high valuations and an 80 cent Canadian dollar, on average," he said.
He furthered, "Buyers should be focused on ensuring they have a strong value creation strategy for acquisitions."
Planques also noted that the strong growth in the activity of private equity firms echoes the general expansion seen in the sector over the last years.
"There continues to be high demand for quality businesses/transactions from PE and pension buyers," he said.
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PwC Canada, in its first Deals report, noted that the Canada M&A space had been busy in the said quarters, with deal volumes rising from 1,522 during the same period last year to 1,879. However, deal value has taken a slight dip, given the fewer mega-deals compared to last year.
During the said period, private equity firms reflected an active participation in the M&A space. Their activity has increased by 40% in volume of buy-side and sell-side deals. For those with disclosed value, more than half (52%) are in the $50 million - $1 billion range.
Also Read: Independent investment banks dwarfed by big banks
Meanwhile, the largest outbound destination of these M&A deals is to the United States, with a 27% growth in deal volume from 245 to 310. Technology and real estate sectors helped boost outbound deals to the US.
In the technology space, a strong showing was seen in deals relating to IT services and consulting. As for the real estate sector, development and operations businesses saw robust deal activity, while real estate services were flat.
PwC Canada national deals leader Dave Planques said the boost in deal volume in 2017 makes for interesting analysis.
"The strong North American economy and large pools of capital to invest contribute to a very active deal market in Canada despite the high valuations and an 80 cent Canadian dollar, on average," he said.
He furthered, "Buyers should be focused on ensuring they have a strong value creation strategy for acquisitions."
Planques also noted that the strong growth in the activity of private equity firms echoes the general expansion seen in the sector over the last years.
"There continues to be high demand for quality businesses/transactions from PE and pension buyers," he said.
Related stories:
Should investors be worried about another Black Monday?
Why private equity firms are ditching complete sellouts
