Dec. 16, 2016
The record surge in Canadian outbound mergers and acquisitions activity in 2016 also bodes well for the Canadian domestic economy, Osler partner Emmanuel Pressman, who specializes in M&A, explains in a Listed article. In the article, author Jim Middlemiss examines the recent massive wave of foreign M&A deals by Canadian companies while breaking down the impact of these transactions. Emmanuel, Chair of Osler’s Corporate Practice Group, explains how this outbound activity helps position Canadian companies well on a global scale.
“These massive, billion-dollar foreign outbound deals are creating global champions based in Canada,” Emmanuel tells Listed. “It’s good for the Canadian domestic economy and it’s good for Canada’s global positioning.”
The article also examines how this outbound M&A trend is masking what has actually been a steady year for domestic transactions as well, which Emmanuel believes will only increase.
“The markets are ripe for a glut of inbound cross-border activity, especially if Canada’s market slows and the U.S. gains steam,” Emmanuel tells Listed.
He says Canada is an attractive destination for foreign capital due to a variety of factors, including the “low-interest-rate environment, widely available credit, a rebounding commodities market and a low Canadian dollar.”
The article also touches on how mid-market deals in 2016 were quite prominent and how private equity has played a key role in many transactions.
“There is a lot of money competing for deals,” Emmanuel says. “You’ve got a massive amount of dollars in pension funds, private equity, SPACs (special purpose acquisition corporations) and on the balance sheet of strategics, and they are all chasing the same deals. We have more clients participating in auctions than I have seen in a very long time.”
Find out more by reading “A lower loonie still goes a long way” [PDF] by Jim Middlemiss from pages 30-34 in the Winter 2016 Special Report on M&A edition of Listed.