Despite the 18% drop in the volume of mergers and acquisitions
as compared to last year, one sector that has not lost a step is
the technology sector. As of June this year there have been about
$260 billion in tech deals announced globally, as has been shown by
Dealogic data, making it clear that at least as of right now the
tech sector is immune to the effects of market volatility that has
other sectors approaching deals with caution. This is the highest
volume that the sector has seen for the period since the tail end
of the dot-com bubble in the year 2000.
The technology sector boom has been spurred by a number of
record breaking deals closed in the spring. The deals have been
precipitated by unprecedented reserves of cash amassed by the major
global tech companies. The top five tech companies in the United
States alone have over $504 billion in their reserves, with the top
50 accounting for $1.1 trillion. These major companies have begun
to pursue creative and diverse expansion strategies by entering
spaces which were previously foreign to them in an effort to
capture evolving market share. The overall market decline has made
targets that may have been outside of the price range just last
year now suddenly affordable. This downward pressure on valuations
has also made it difficult for companies to secure funding, giving
them no choice but to turn to enter the M&A market where
non-traditional buyers are waiting and are in need of the emerging
technologies to enable them to remain competitive into the
A sub-sector that has seen particular interest involves
marketing oriented operations including digital agencies, ad tech
companies and analytics firms. M&As in this sub-sector has
surged globally to a total volume of $6.8 billion based on 204
deals as compared to a total volume of $2.1 billion on 85 deals in
the same period last year, as reported by AdvertisingAge. Of these deals 62% have
involved companies with digital marketing capabilities as compared
to 42% of last year. Cross-border companies and private equity
funds were the main buyers responsible for this surge.
The author would like to thank Shreya Tekriwal, 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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