Sellers' Market
While overall year-to-date 2018 deal value has been propped up
by a small number of megadeals, there has been considerable deal
volume in transactions under C$100-million, according to the CVCA Venture Capital and Private Equity Canadian
Market Overview H1 2018.
Irrespective of deal size, it is clear that the seller-friendly
dynamics that have been so pervasive in recent years are continuing
in full force in 2018, even at the smaller end of the market. With
the significant amount of private equity and pension fund dry
powder available for deployment, we see no signs of these
seller-friendly conditions letting up any time soon.
Near the top of these seller-friendly conditions is the high
frequency — and now near-routine nature — of auction
sale processes. It is becoming increasingly common to see sellers,
even in lower value deals, engaging sell-side financial advisers.
Further, the auctions themselves are intensifying with greater
bidder
