Like Fine Wine, Does M&A Activity Get Better With Age?

Canada's population is aging quite rapidly. Statistics Canada reported that in 2016, the proportion of seniors representing the total Canadian population surpassed that of children. Furthermore, since 2011, there has been a rapid increase in the number of Canadians over 65 years of age and leaving the workforce. As explored in a previous blog post, such demographic changes and trends are rather intimately related to merger and acquisition (M&A) activity. In particular, as more and more Canadians reach ages 65 and older, a greater proportion of retiring business owners will consider selling their businesses.

Demographic changes fuel food & beverages M&A

The food and beverage industry is anticipated to especially experience a burst of M&A activity due to the above-mentioned demographic changes. In fact, Deloitte predicted that 2017 would be a "banner year for food and beverage M&A deals" and partly attributed this prediction to the retirement of aging business