Canadian M&A Review:
YTD Q3 2018 Edition
Driven by ease of access to financing, strong economic growth, Canadian M&A has experienced a stellar decade of deals. Amidst recent turbulence in global trade discussions and softening in some international markets, Canadian M&A activity seems to have stayed the course for now. Deal activity continued to be robust as of YTD September 2018. Technology has been the most active segment, representing 21 percent of total deal volume, while energy and resources had the highest share of disclosed deal value with approximately 33 percent in Q3 2018. The market also saw its fair share of private equity fundraising and several megadeals.
Economic conditions suggest that M&A activity growth will taper in FY19, while deal activity may still be sustained in the near-to-medium term. While cross-border deals represented over 50 percent of all deals in Q3 of this year, it is unclear how US policy will impact inbound investment to Canada, while outbound to the US may remain steadfast. Similarly, Canadian economic expansion is projected to continue, but the rate of growth is expected to drop to slightly below two percent next year and even more to 1.4 percent in 2020.
Read more on economic and deal trends, and our prediction of what the future holds.