Mergermarket recently released its 2015 full-year edition of Deal Drivers Americas (the
Review). This comprehensive review of M&A
activity in the Americas confirmed that 2015 was a year of
mega-deals. Transactions involving giants such as Pfizer, Time
Warner Cable, and Kraft contributed to an increase of 30% in
M&A value, reaching a total of US$4.28 trillion across North
America. In the US alone, deal value rose 40% since 2014, hitting a
record high of almost US$2 trillion.
The Review evaluated by sector and by region. Some of the sector
Technology, media and telecom: Technology,
media and telecom was the most active sector in 2015 accounting for
a fifth of North America's annual M&A annual volume and
deal value. The Review projected that the technology boom will
continue to drive M&A activity in this sector in 2016 as
companies seek involvement in the Internet of Things, cloud
computing and big data.
Financial services: The Review reports that
M&A volume in financial services in 2015 increased by 8 and
expects that foreign-investor interest in North American insurance
companies and consolidation trends in banking will continue to
drive dealmaking in this sector in 2016. It is also anticipated
that shareholder activism will result in more banking deals as
investors raise larger funds.
Energy, mining, and oil and gas: Energy,
mining, and oil and gas dealmaking felt the impact of the drop in
the commodity price in 2015 with M&A volume falling 28% and
value falling 21% since 2014. A more active year is projected for
2016 however, given the increasing demand from private equity firms
and the pressure on oil majors for growth.
Life sciences and healthcare: Dealmaking in
life sciences and healthcare accounted for 16.5% and 10.2% of all
North American deal value and volume respectively, in 2015. M&A
activity is expected to continue to rise in this sector, as bigger
pharmaceutical companies consolidate and the Affordable Care
Act pressures healthcare providers to merge.
The Review also reported on regional findings for Canada, Latin
America, West and South (including the western and southern
American states respectively). In Canada, energy and mining deals
accounted for 60% of all Canadian dealmaking value in 2015. The
Review indicates that while M&A volume is expected to increase
in the energy and mining commodity-driven sector, inbound
dealmaking is also anticipated to rise due to the strength of
The Review anticipates that the drivers of M&A activity from
2015 will persist in 2016. Corporations will continue to pursue
growth through acquisitions and competitors will continue to
consolidate. Although the instability of the global economy may
stymie IPOs, life sciences and technology firms will continue to
enter the public equity market. It follows that M&A activity in
the Americas is well positioned for another strong year in
The author would like to thank Robyn McLaren, articling
student, for her assistance in preparing this legal
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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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