Topic: Finance

The impact of foreign exchange fluctuation on M&A activity

By Troy Ungerman (Toronto) on July 4, 2017 Posted in Finance, M&A

Over the past few years, we’ve seen the loonie plummet to lows not seen in decades. Although this is sad news for Canadian investors, it makes the Canadian market attractive foreign buyers who can acquire Canadian companies at a discount based on foreign currency exchange. Arguably, this bodes well for sellers who are highly motivated … Continue reading

Picking it up for a song: deal considerations when purchasing a distressed business

By Alexander Schmitt (Toronto) on May 30, 2017 Posted in Finance, M&A

Although a growing body of evidence—from job numbers to stock price figures—suggests that the Canadian economy is set for strong growth this year, there will always be companies (and industries) that get left behind for one reason or another. Where those companies that cannot meet their obligations have otherwise attractive assets, it presents an opportunity … Continue reading

True sales: a refresher

By Matthew Lippa (Toronto) on May 18, 2017 Posted in Finance, M&A

Securitization remains an important tool for companies to realize value from future payment streams and raise financing, typically at a better cost of funds than the interest expense associated with a corporate loan or bond. While there are many different ways to structure a securitization transaction, it is of paramount importance to isolate the relevant … Continue reading

Distressing prospects for distressed debt?

By Troy Ungerman (Toronto) on March 7, 2017 Posted in Corporate finance, Finance, M&A

According to a Debtwire report released this month, the North American distressed debt market will be characterized by continued volatility throughout 2017, with the oil & gas sector presenting the most attractive opportunity for investors. Financial services, industrials and real estate were also identified in the report as being ripe for investment in the coming … Continue reading

M&A transactions between fintech companies and traditional banks

By Denise Gan (Toronto) on November 23, 2016 Posted in Finance, M&A, Technology and innovation

Financial technology (fintech) companies like Square, Wealthsimple and Mint are already having disruptive effects in their respective industries, changing the way Canadians pay for goods and services, invest their savings, and manage their finances. A recent survey shows that Canadians are becoming less dependent on traditional banks given the variety of options to self-manage their … Continue reading

Bitcoin update: cryptocurrency remains rare in M&A transactions despite potential

By Matthew Lau (Toronto) on September 29, 2016 Posted in Antitrust, competition and regulatory, Finance, M&A

Bitcoin remains a fringe currency in the context of M&A transactions. Despite some notable advantages over fiat currency, the risks associated with funding a large transaction using the cryptocurrency have limited its use to deals between players in the Bitcoin space. This article provides an update to our previous article on Bitcoin’s viability as a … Continue reading

Taking stock of SPACs

By Bruce Sheiner on September 8, 2016 Posted in Corporate finance, Finance

While the CPC program has existed for a number of years under the TSXV and Special Purpose Acquisition Companies (SPACs) have long been a feature of American capital markets, as we alerted in October of last year, SPACs are a relatively new arrival in Canada, with the first Canadian SPAC created in April 2015. The … Continue reading

Money makes the world go ‘round: lender protections in leveraged acquisitions

By Troy Ungerman (Toronto) on August 31, 2016 Posted in Finance, M&A

With Canadian prime and US federal interest rates maintaining an all-time low since the 1980s, the current market is well-positioned for leveraged acquisitions. Whether a purchaser does not have the liquidity to acquire a business or believes the potential growth of the investment will outpace any interest accumulating, the use of borrowed money to purchase … Continue reading

Financing with non-bank lenders

By Noah Schein (Toronto) on August 23, 2016 Posted in Finance, Financial institutions, M&A

Non-bank lenders are increasing their market presence in both acquisition financing and the provision of financial solutions for ongoing operations, including in the asset-based lending context. The increased presence of non-bank lenders seems to be driven by both the benefits of working with providers of non-regulated alternative capital source funding and the regulatory limitations faced … Continue reading

Weak loonie, no problem for Canadian institutional investors

By Matthew Lippa (Toronto) on March 23, 2016 Posted in Corporate finance, Finance

2015 was not the kindest to the Canadian dollar as it saw its value depreciate by 15% when compared with the U.S. dollar. Despite the weakening Canadian dollar, Canadian companies remained undeterred in their pursuit of foreign acquisitions. According to a recent Bloomberg study, in 2015, Canadian companies acquired $205 billion worth of assets, almost … Continue reading

Dealmaking in a negative interest rate environment

By Matthew Lau (Toronto) on March 8, 2016 Posted in Corporate finance, Finance

The term “negative interest rates” was introduced into the Canadian vocabulary on December 8, 2015, when the Bank of Canada announced that it would be willing to use this “unconventional monetary policy tool” in the event of economic crisis. With the current benchmark interest rate of 0.5% already near historic lows, this announcement suggests that … Continue reading

A global overview of December 2015 M&A activity

By Troy Ungerman (Toronto) on January 12, 2016 Posted in Corporate finance, Finance, Pharmaceuticals and life sciences

According to Mergermarket’s December insider, November 2015 was a record setting month for M&A activity. By the end of the month, global M&A value reached US$3.9tn which surpassed the 2007 full year record by almost 6%. This record came on a drop in volume by 1,228 transactions which further cements 2015 as the year of … Continue reading

The capital pool company: an alternative way to go public

By Troy Ungerman (Toronto) on October 28, 2015 Posted in Corporate finance, Finance

Going public Going public is, expectedly, the goal of many private companies and their founders. There are two methods of taking a private company public—initial public offerings (IPO) and reverse take-overs (RTO)—that draw the most attention in our capital markets and headlines, most often because of the lucrative opportunities or surprising arrangements that they create. … Continue reading

PPSA registrations in asset purchase transactions: when are they necessary?

By Matthew Lippa (Toronto) on August 11, 2015 Posted in Corporate finance, Finance

In asset purchase transactions involving the sale of accounts receivable, questions often arise about whether a registration under the applicable provincial Personal Property Security Act (PPSA) will be necessary. The answer to this questions depends on a number of factors, including where the seller’s accounts receivable are located and whether a party is the purchaser … Continue reading

M&A in Canada: industry revenue and profits

By Bruce Sheiner on July 7, 2015 Posted in Corporate finance, Finance, Infrastructure, mining and commodities, Pharmaceuticals and life sciences, Transport

Expanding growth in nearly all sectors Norton Rose Fulbright focuses its services on 6 key industry sectors and, according to a study released recently by the Globe and Mail on Canadian corporations, almost all of these sectors have seen an expansion in revenue and most have seen growth in profits during the period from 2011 to … Continue reading

Proposed changes to TSX rules concerning M&A

By Troy Ungerman (Toronto) on January 14, 2014 Posted in Corporate finance, Finance

The Toronto Stock Exchange (TSX) recently published for comment certain proposed amendments to the TSX Company Manual (the Manual), which regulates issuers listed on the TSX. The comment period closed yesterday, on January 13, 2014. The proposed amendments target two aspects of mergers and acquisitions involving TSX issuers. Firstly, the changes seek to modify the … Continue reading

Q3-2013 Canadian M&A activity: the results are in

By Troy Ungerman (Toronto) on November 6, 2013 Posted in Corporate finance, Finance, Infrastructure, mining and commodities

The results are in for Q3-2013 Canadian M&A and the outlook is decidedly mixed. While Q3 M&A activity rose sharply on a value basis as compared to Q2-2013, Q3 volume was down from last quarter and overall 2013 M&A remains in a slump at the lowest levels in nearly a decade. Mergermarket’s Canadian M&A trend … Continue reading

Q2 2013 M&A Trends

By Trevor Zeyl (Toronto) on August 19, 2013 Posted in Corporate finance, Energy, Finance, Financial institutions, Infrastructure, mining and commodities

Canadian M&A Q2 2013 results have not provided the desired relief from lacklustre Q1 results. However, while not much of the lost ground was gained, the sharp decline in M&A activity experienced in the first three months of 2013 appears to have subsided. According to Bloomberg’s recently published M&A Rankings, these results are in line … Continue reading

Q1 2013 M&A Trends

By Trevor Zeyl (Toronto) on May 30, 2013 Posted in Corporate finance, Finance, Financial institutions, Real estate

Canadian M&A continued its decline in Q1 2013, reaching lows not seen since Q1 2009. According to Crosbie & Company Inc.’s Q1 2013 M&A Report, which compared M&A activity results from Q4 2012 to Q1 2013, the market has declined significantly both in transaction value (51%) and volume (35%). Specifically, while Q4 2012 saw 301 … Continue reading

Trends in Q3 M&A activity

By Trevor Zeyl (Toronto) on October 31, 2012 Posted in Corporate finance, Finance

Canadian M&A activity was down sharply in Q3, but the proposed $15.1 billion takeover of Nexen Inc. by China National Offshore Oil Company Limited drove the overall value of deals up 23% over Q2 and 16% over Q3 2011. PricewaterhouseCoopers (PwC) recently released its report, Capital Markets Flash: Q3 Canadian M&A Deals Quarterly, which outlined … Continue reading

Increasing focus on M&A alternatives

By Troy Ungerman (Toronto) on October 17, 2012 Posted in Corporate finance, Finance, Financial institutions

With increasing cash reserves and a stagnant economy, firms are looking for alternatives to M&A for excess cash, including returning capital to shareholders by way of repurchase, dividend and debt reduction. According to the Thomson Reuters fourth annual Outlook for Investment Banking Services Survey, as valuations continue rising in the Americas, firms are becoming less interested in using … Continue reading

Q3 M&A Trends

By Trevor Zeyl (Toronto) on October 9, 2012 Posted in Corporate finance, Finance

Thomson Reuters recently released its Q3 Mergers & Acquisitions Review – Financial and Legal Advisory Review. Overall, worldwide M&A totalled US$455B, but was down 16% from 2011, with quarterly activity down 13%. The United States was the biggest contributor to Q3 M&A activity, accounting for 43% or US$195B of the worldwide total. Despite the general … Continue reading

M&A Trends for Q2

By on July 20, 2012 Posted in Finance

Yesterday Price Waterhouse Cooper released its Q2 M&A report on the 721 deals worth $47.7 billion announced in that quarter, and there were a few surprises. Although deal volumes, as expected, declined 7% over Q1 and 14% over Q2 2011, many Canadian entities are focusing on foreign markets, including Europe. In Q2 Canadian acquisitions into … Continue reading

Canada’s approach to the Eurozone crisis

By Troy Ungerman (Toronto) on July 9, 2012 Posted in Finance

The most recent EU summit took place in late June, leading to an agreement among leaders to create a joint banking supervisory body for the Eurozone and implement a planned bailout fund for struggling banks. While analysts have applauded these steps as key achievements toward steadying markets in both the short and long term, questions … Continue reading