Joyce M. Bernasek, Susan Newell, Michael Watts, Tearney Johnston-Jones
Dec 13, 2021
The ongoing surge in merger and acquisition transactions since 2020 has been widely commented on throughout the past year. As the initial hesitancy towards engaging in M&A activities early in the pandemic wore off, private equity firms became increasingly active, motivated by a need to deploy unused capital that had built up during earlier lulls before the expiration of applicable investment periods. In addition, M&A activity in Canada has been driven by historically low interest rates and increasing confidence in the economy’s recovery as the pandemic starts to ease. With access to idle pools of funds, low interest rates and a dramatic rise in activity levels, foreign investors have entered the Canadian marketplace with fervor, particularly in the health sector.
Canada’s health industry landscape: No longer perceived as the land of “free healthcare”
The Canadian health industry has been increasingly attractive to investors, particularly health clinics specializing in veterinary medicine, dentistry and orthodontic services, as well as virtual care. This growing attraction flies in the face of the mistaken view that the Canadian healthcare system is an entirely public healthcare system – a view held by many despite the fact that most health clinics in Canada are privately owned and operated...
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