A recent PwC survey shows that, even after a historic
year in 2015 regarding M&A activity, the ever-increasing
appetite for M&A will continue its upward trend in 2016.
In 2015, 65% of all deals met PwC's standard for "mega
deals", which PwC defines as transactions valued at over $5
billion USD. This year, the strategy to optimize results and
performance through "active portfolio management" will
continue to drive strategic partnerships and acquisitions in the US
According to the survey, 59% of 97 US-based CEOs (of companies
with annual revenue from $1-10 billion USD) said that they were
planning to enter into new strategic alliances or joint ventures in
2016. Over 45% said they were planning to initiate a domestic
M&A transaction and approximately one-third said they were
planning to initiate a cross-border M&A transaction in 2016,
which means that Canadian companies should be on the lookout.
Though these numbers are not as high as those of 2015, PwC still
expects the mega deal activity to continue throughout this
Turning abroad, about 50% of the 1,409 CEOs globally surveyed
said that they were planning to enter into new strategic alliances
or joint ventures this year. Over 25% said they were planning to
initiate a domestic M&A transaction and slightly less than 25%
said they were planning to initiate a cross-border M&A
What makes for such a hot deal market in 2016? At least in the
US, PwC claims that companies will continue to pursue deals to
position themselves for growth in the fast-moving technology sector
and unlock value in stagnant mature sectors such as industry
products. In the face of changing external conditions, there seems
to be no other way for companies to thrive.
If the first half of 2016 is any indication of M&A activity
in Canada for the rest of 2016, the second half of 2016 promises to
bring exciting times for Canadian companies. Hang onto your
The author wishes to thank Peter Choi, summer
student, for his 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.
While most are well aware that the sale of a business is generally a complex process, even sophisticated business owners are surprised by just how much cost and effort is required to complete the sale.
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