M&A Trends For 2017: Canada A Likely Target

According to a year-end report on M&A Trends published by Deloitte, corporate and private equity executives surveyed in the last quarter of 2016 anticipated significant M&A activity in 2017. Indeed, three quarters of survey respondents expect deal activity to increase in 2017 relative to 2016, and almost 65% expect deal size to increase. Aside from strategic reasons, the expected increase in the pace and size of transactions may be linked to high stock prices, continued low interest rates, and availability of cash held in reserve by large companies.

In the Canadian context, the Deloitte report suggests that U.S.-based investors are looking at M&A opportunities abroad, with Canada ranking first among foreign markets, particularly among corporate respondents. Forty percent of respondents to the Deloitte survey cited Canada as a target market, with the UK (31%), China (25%), Japan (34%) and Europe (22%) lagging behind.