Canadian companies are becoming increasingly attractive to
American and European companies as targets of foreign investment
according to a recent article from the Lexpert Special Edition on Canada's Leading
Corporate Lawyers, published within the June edition of
The Globe and Mail's Report on Business Magazine. The
Lexpert article states that both U.S. and U.K.-based investors in
particular are increasingly turning their attention to Canada for
According to the Lexpert article, which surveyed leading
Canada's leading M&A corporate lawyers on the topic,
American companies are the main source of cross-border deal
activity, due in large part to a strong U.S. dollar and healthy
balance sheets. A trend to watch is the role of U.S. private-equity
funds finding deal opportunities in the Canadian middle-market. The
article indicates that this trend is on the rise due to
Canada's middle-market being less expensive than its U.S.
equivalent. These are not necessarily blockbuster deals per se but
in the aggregate they are contributing to an increase in M&A
cross-border activity. Lexpert also points to a growing trend of
the baby boomer generation seeking to sell their companies and
smaller U.S. private equity firms having the cash to take advantage
with a view to build the firms' investment portfolios.
U.S. private equity is also finding attractive targets in
Canada's oil and gas sector. The Lexpert article does however
warn of potential regulatory issues with the federal government
possibly wanting to protect especially strategic assets.
The market is seller-friendly, with sellers becoming
increasingly demanding in deal negotiations. In particular, the
article details how some sellers are negotiating limited recourse
and indemnification terms and as a result there has been an
increase in the use of rep and warranty insurance for buyers, which
up until recently, while being popular in the U.S. market, was
limited in Canada.
The U.S. is not the only region seeking M&A opportunities on
Canadian soil, the article points to the U.K. as being a source of
funds not only from Europe, but also from the Middle East. Canadian
companies appear to be in the limelight going into the summer, with
various foreign players finding attractive M&A opportunities
here in Canada.
Norton Rose Fulbright Canada LLP
Norton Rose Fulbright is a global legal practice. We provide
the world's pre-eminent corporations and financial institutions
with a full business law service. We have more than 3800 lawyers
based in over 50 cities across Europe, the United States, Canada,
Latin America, Asia, Australia, Africa, the Middle East and Central
Recognized for our industry focus, we are strong across all
the key industry sectors: financial institutions; energy;
infrastructure, mining and commodities; transport; technology and
innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global
business principles of quality, unity and integrity. We aim to
provide the highest possible standard of legal service in each of
our offices and to maintain that level of quality at every point of
Norton Rose Fulbright LLP, Norton Rose Fulbright Australia,
Norton Rose Fulbright Canada LLP, Norton Rose Fulbright South
Africa (incorporated as Deneys Reitz Inc) and Fulbright &
Jaworski LLP, each of which is a separate legal entity, are members
('the Norton Rose Fulbright members') of Norton Rose
Fulbright Verein, a Swiss Verein. Norton Rose Fulbright Verein
helps coordinate the activities of the Norton Rose Fulbright
members but does not itself provide legal services to
The content of this article is intended to provide a
general guide to the subject matter. Specialist advice should be
sought about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
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.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).