Crosbie & Company's quarterly Canadian M&A Report has indicated an
overall decline in activity for the first quarter of 2015, with
total deal volume down 7% and total value down 46% from the
Accounting for the decrease in deal value is the fact that the
majority of transactions this quarter took place in the mid-market
segment. While mid-market deals (under $250 million) represented
90% of all transactions this quarter, they accounted for only $9
billion, or 20% of total deal value. Mega-deals (over $1
billion), on the other hand, accounted for $26 billion in value,
with a total of 8 transactions during Q1 2015.
Activity by sector
The most active sector by deal volume this quarter was Real
Estate, with 104 transactions totalling $6.7 billion. This is
consistent with past performance: real estate has been the most
active sector for eleven consecutive quarters.
With 80 transactions totalling $11.3 billion, Industrials was a
heavy-hitter this quarter, taking the top spot in terms of deal
value and second only to Real Estate in terms of volume.
Following closely behind Industrials was Financial Services with
over $9 billion in deals. Information Technology and Customer
Discretionary were also quite active this quarter, closing 79 deals
Ontario, British Columbia, Alberta, and Quebec were the most
active provinces this quarter, making up 88% of all deal
activity. Ontario's first quarter performance,
representing 39% of all activity nationwide, is up significantly
from Q1 2014.
Cross-border deals comprised 42% of all activity in Q1. Canadian
outbound transactions exceeded inbound transactions in terms of
both deal volume and deal size. In terms of volume, Canadian
companies making foreign acquisitions exceeded the rate of foreign
companies acquiring in Canada by a rate of 1.5 times. In
terms of value, outbound transactions outpaced inbound transaction
by a factor of 9 times.
The author would like to thank Erika Anschuetz,
summer student, for her assistance in preparing this legal
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