Cross-Border Private M&A In Canada: 10 Tips For Foreign Acquirers

Canadian private M&A slowed somewhat in 2015 and early 2016, owing to the depressed market for commodities, but deal flow is roaring back in the latter half of 2016. While Canadian M&A takes many cues from the United States and Europe, it is unique in many ways. A successful foreign acquirer advised by Canadian legal counsel will be armed with knowledge about these differences.

1. The Canadian Market Has Matured

Gone are the days of foreign private equity firms finding founder-operated businesses to acquire in Canada at a low multiple. The majority of sellers and buyers in reported private M&A transactions in Canada are strategic corporations or financial players rather than founders. Canadian M&A deals are increasingly done with the assistance of representation and warranty insurance. On the vendor side of multinational auction transactions, Canadian law firms have started providing vendor due diligence reports to bidders on a non-reliance basis.