Mergers & Acquisitions: Noteworthy Trends 2011

Copyright 2011, Blake, Cassels & Graydon LLP

Noteworthy trends that will have an impact on the Canadian mergers and acquisitions landscape in 2011:

M&A WILL CONTINUE ITS UPSWING:

Following a lacklustre 2009 and an uneven 2010, 2011 promises further economic recovery and a gradual increase in M&A activity. Although the stagnant global economy will likely continue to present limited organic growth opportunities, as cash accumulates on balance sheets, companies will pursue strategic acquisitions. Financial buyers will also be in an acquisitive mode as commitments on capital raised in 2006 and 2007 will start to expire. Although mid-market transactions will continue to dominate the Canadian marketplace, having represented approximately 90 per cent of all M&A activity in 2010, mega-deal activity (deals over C$1-billion) will continue to strengthen. Notwithstanding these positive factors, some buyers will remain cautious given lingering concerns over a possible