& Company recently released its Canadian
M&A Activity – Fourth Quarter 2013 Report. The report
explains that while M&A activity in Q4 didn't deviate much
from the year's previous quarters, suggesting a relatively
stable year from a numbers perspective, a closer look at 2013 deal
activity as a whole tells a slightly different story.
"The mix of deals in the Canadian M&A market has really
shifted in recent years," said Colin Walker, [Crosbie's]
managing director, noting that some of the sectors that
historically were key contributors (such as mining) have become
noticeably quiet, while others (such as real estate) have surfaced
as the new leaders.
Crosbie's report sets out the following key shifts in 2013
Canadian M&A activity as a whole:
Activity in the Real Estate sector flourished
in 2013, representing nearly a third of total deal activity and
Transactions by Financial Sponsors in excess
of $100 million represented 23% of announcements and 24% of overall
value in 2013
While historically strong contributors to the overall market,
the Base Metals and Gold sectors
declined significantly in 2013, with base metal announcements
Transaction value in the Oil & Gas sector
declined by 71% to $17.6B in 2013, and deal activity fell from 224
transactions in 2012 to 164 transactions last year
114 deals worth $11.3B were reported in the Industrial
Products sector, representing a decline of 23% in both
number of announcements and value
The Consumer Products sector was the only area
to see M&A results which nearly mirrored its performance in
2012, both in terms of activity (60 transactions) and value ($17.4
While Crosbie's report considered key trends in Canadian
M&A in 2013 as a whole, it also looked at results from Q4
2013 in particular. Of note is that the 240 transaction
announcements in Q4 (compared to 230 announcements in Q3 2014)
represented a total value of only $33.5B, considerably below the
average of $41.6B for the year's previous 3 quarters. Despite
what may appear to be discouraging results, however, the report
interpreted the numbers positively:
"Although M&A activity has been lower than we would
have expected, it is nevertheless a good time to sell
businesses," said Colin Walker. "We continue to see
strong buyer interest in most sectors and financing for buyers has
never been better. These conditions support attractive valuations
and provide the ingredients for stronger M&A activity in
Indeed, the mid-market was very active in Q4 (211 reported
transactions under $250M) and accounted for 88% of activity.
Cross-border M&A accounted for 47% of all announcements, and
Canadian companies continued to be exceptionally active
internationally: Canadian out-bound M&A in 2013 surpassed
inbound M&A by 2.5:1, the highest level reported in the past
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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