Canada: Recent developments in Canadian M&A
SUPPLEMENT - THE 2009 GUIDE TO MERGERS & ACQUISITIONS - June 01, 2009
Stikeman Elliott
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After a number of years of robust activity, the global credit crisis and related economic uncertainty greatly impacted the volume of Canadian M&A activity in 2008. According to data compiled by Financial Post Crosbie: M&A in Canada, there were C$114.8 billion of deals in 2008, down a remarkable 69% over the record C$370 billion of deals in 2007. Further, there were only 21 mega deals (defined as transactions valued above C$1 billion) in 2008 versus 60 in 2007. Not surprisingly, 2008 saw an increase in strategic deals and financial buyers had significantly less presence.
Most Canadian M&A practitioners expect the trend towards strategic deals to continue in 2009, and reduced valuations and economic challenges to create a buyer's market. These factors and gaps between buyer and seller expectations are also expected to lead to an increase in unsolicited mergers and acquisitions.
Transactions of...
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