A dynamic M&A market will make the Canadian economy stronger
Some recent Canadian examples highlight these two approaches. Defensively, there’s Invoice Delivery Services’ decision to accept an $ 80 million takeover by U.S. healthcare improvement firm Premier Inc., and cryptocurrency startup Coinsquare selling it. a 20% stake in the startup FinTech Mogo for $ 56 million. . Examples of an offensive strategy include Kansas-based credit provider CURO Group, acquiring Flexiti Financial for US $ 85 million, and Dye & Durham acquiring Australian competitor GlobalX for US $ 166 million.
Although no crystal ball exists to predict what will happen this year, several sectors are expected to be active in mergers and acquisitions in the coming months, including banking, insurance, real estate and consumer products. .
We also expect opportunistic M&A activity to continue in the retail, automotive, tourism and hospitality sectors, and an increase in M&A activity and investment in the sectors. telecommunications, media and technology. Even sectors that are already strongly consolidated are likely to see companies more open to acquisitions in adjacent or disruptive sectors, as they think differently about their business model in a post-COVID environment.
For companies looking to execute their M&A strategies this year, conditions that have helped fund the recent surge in M&A growth, such as historically low interest rates and large amounts of dry powder. private equity, are expected to continue for the foreseeable future. . It is therefore reasonable to expect that significant M&A activity will remain robust in Canada in 2021, contributing to a stronger and more resilient Canadian economy going forward.
As immunization programs progress and the economies of Canada and other developed countries begin to recover from the impact of COVID-19, we must recognize and applaud the important role that mergers and acquisitions play in fueling this recovery.