Mar 11, 2016
While many headlines proclaim negative news about today’s market, Tim Kiladze of The Globe and Mail discusses in his article, “How equity offerings are driving a boom for big dealers” that while independent dealers are struggling, business is booming for many big dealers.
Last year equity deals were nearly at a record high, low rates kept debt financings brisk and mergers and acquisitions were close to $300 billion (US). Roughly 80% of these M&A saw Canadian companies doing deals internationally; in 2016 there have already been billion-dollar acquisitions in pharmacy, mining and waste management. This diversification by geography and sector makes it unlikely that the recent change in policy regarding the length of time poison pills can stay in place will cool the market.
Manny Pressman, a partner and Co-chair of Osler’s Corporate Department, told The Globe and Mail: “The reality is that there’s a lot of M&A activity in Canada, but hostile M&A is infrequent relative to arrangements and board supported transactions. Even if there was a chilling effect, it wouldn’t be that noticeable.”
To read more about the kinds of equity financing investors support and trust and how this boom bodes well for the market in 2016, read Tim Kiladze’s full article “How equity offerings are driving a boom for big dealers” online at The Globe & Mail, March 11, 2016.