EY has released the 14th edition of the Media and
Entertainment (M&E) Global Capital Confidence Barometer (the
Report) which concludes that M&A activity will
become an important piece to value creation strategies given the
current subdued economic environment. The survey canvassed a panel
of more than 1,700 executives in 45 countries of which 75
respondents represented the M&E industry.
Zero percent of the respondents expect strong growth in the
economy, down 23% from six months ago. In this context, M&E
companies are expected to proactively explore growth options by
pursuing bolder and more novel strategies such as cross-sector
moves and larger deal values.
Cross-sector deals are attractive sources of accessing new
technologies and business models. The Report, however, cautioned
that ineffective integration and post-transaction alignment of
cross-sector businesses can result in failed synergies and ongoing
cultural differences within the organization.
Thirty-two percent of respondents reported targeting deal sizes
of more than USD $250 million, up more than 10% from six months
ago. Relatedly, M&E executives are maintaining robust deal
pipelines with 45% of respondents evaluating more than three deals
and 76% evaluating at least two.
Corporate strategy is concentrated on developing competitive
advantages through a focus on "relevant" markets –
as opposed to the traditional binary approach of
"developed" versus "emerging" markets.
Seventy-eight percent of the respondents noted that they are
looking to pursue cross-border acquisitions in the next twelve
months. The top investment destinations for M&E companies are
the United Kingdom, United States, France, Canada and China.
Stability in the economy was cited in the Report as a primary
factor drawing investment to Canada.
The digital realm continues to dominate the boardroom agenda as
companies seek to leverage new technologies and data, while
balancing risk of increased cyber security threats and attacks.
Previous posts discuss the
regulatory framework in Canada in respect of cyber risks and
cyber security insurance as a tool for managing such risks.
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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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