In a recent study, Business Without Borders International Growth at
Mid-Cap Companies, Mergermarket and Mazars have reported
that most mid-market companies are looking at ways of driving
growth through expansion into new international markets rather than
growing domestically. The study analyzed the opinions of over one
hundred senior corporate decision makers (CEO, COO, CFO or Head of
Strategy) at global mid-market firms, including Canadian players,
to discover which markets and regions they are targeting, where
they are already achieving success and how they intend to finance
their international growth plans.
The report suggests that mid-cap companies worldwide experienced
a strong end to 2014. In the increasingly globalized world, most of
these players are looking at ways of growing through expansion into
new international markets. Approximately one half of respondents
already generate more than 50% of their revenues internationally,
and around the same number of players already operate in more than
10 international markets. Half of those polled also plan to make an
acquisition in the next three years thus becoming one of the
driving forces behind global M&A activity in the near
The report also reveals that mid-market companies consider Asia
as a particularly attractive market for growth, with respondents in
EMEA, the Americas and Asia all most likely to cite countries in
this region as ones where they are most likely to set their foot
in. India and Australia were also suggested as hotspots for future
investment by the respondents. The respondents also noted that
expansion into Asia would likely bring challenges, stating that
Asian markets are one of the most difficult in which to
In terms of financing international growth, 58% of mid-market
companies surveyed are likely to use bank debt to fund overseas
expansion, with 56% looking to internal profits and 31% to
investment from private equity or venture capital. This may signal
a trend of returning to bank financing following the opposite trend
in favour of alternative lenders seen during the last financial
crisis. However, the report also cautions that some reluctance to
make more use of the financing opportunities afforded by global
capital markets could result in restricted levels of growth for
those companies that are unwilling or unable to tap the additional
financing available through bond end equity instruments.
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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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