The results are in for Q3-2013 Canadian M&A and the outlook
is decidedly mixed. While Q3 M&A activity rose sharply on a
value basis as compared to Q2-2013, Q3 volume was down from last
quarter and overall 2013 M&A remains in a slump at the lowest
levels in nearly a decade.
Canadian M&A trend report highlighted some less than ideal
statistics for the Q1-Q3 period, stating that M&A activity
during the period actually fell to the lowest levels since Q1-Q3
2004 and was down 34.6% from the same period in 2012. However, it
went on to indicate that so far this year we have seen the highest
number of announced transactions since Q1-Q3 2007, with 359 deals.
The report stated that although large-cap transactions were down
around 40% in both deal value and deal count from Q1-Q3 2012,
mid-market and small-cap deals were on the rise.
Q3-2013 report focused on some more encouraging facts,
spotlighting the spike in deal value in Q3 as compared to Q2. There
were nine deals in Q3 topping $1 billion, with $54.8 billion of
M&A activity overall, up from $38.9 billion in the previous
quarter. The retail sector had a particularly strong showing in
Q3-2013, but unfortunately the same cannot be said for the resource
sector which continues to struggle due to a dearth of oil and gas
and mining deals.
Looking forward, PwC provided some encouraging projections for
Q4-2013, indicating that Canadian pension funds and real estate
parties are expected to continue to be active M&A players, and
signaling that China will likely step up its acquisition growth in
Canada, with an emphasis on agribusiness. Deloitte's Q3-2013 CFO Signal Results, which detail CFO's
expectations of deal activity in the next year, were also positive.
Nearly half of CFOs expect significant deals in the coming year,
mainly because they forecast considerable growth opportunities both
domestically and abroad. CFOs in the retail/wholesale sector are
the most optimistic, making up two thirds of the CFOs who expect
increased M&A. Deloitte's report notes that the other half
of CFOs are not planning to pursue M&A transactions, mainly due
to their view that organic growth options are more optimal.
Norton Rose Fulbright Canada LLP
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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