Canadian M&A Activity: Recent Insights & Trends – Part Two

In the first part of this blog post series, we looked at recent general trends in the Canadian M&A market overall, including a decline in overall transaction activity since 2009.

However, when looking at M&A activity in certain sectors or by deal value, we see slightly different trends emerging:

  • The steepest decline in activity has been concentrated at the lowest end of the market (value under $5M), where we have seen a 64% decline in the number of transactions since 2009 or an annualized decline of 18% per year.
  • At the high end of the market (value over $250M), overall transaction activity has seen strong growth, increasing by 47% since 2009 or an annualized growth of 8% per year.
  • Activity in the $10M to $100M level of the market has been resilient, with an overall decline in the number of transactions of only 7% since 2009 or an annualized decline of just 2% per year.

Slide 4

  • By number of transactions, the materials sector (paper & forest products; metals & mining; containers & packaging; construction materials; chemicals; and other materials) and the oil & gas sector have made up almost half of Canada’s M&A market over the past two years.
  • However, as a share of overall transaction activity, the materials sector has been steadily declining, while the real estate and technology sectors have increased.

Slide 6

Slide 7

It is clear from these statistics that, although the overall transaction activity has been declining in recent years, certain segments of the Canadian M&A market remain active and strong.

These trends may offer insights and opportunities for participants in Canadian M&A deals. For more information contact Matthew Kelleher, Genevieve Pinto and Fleur Heck.

 

 

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