Topic: Financial institutions

Subscribe to Financial institutions RSS feed

Speaking the portability language: How portability clauses are helping debt-laden companies enter into M&A transactions

By Olga Lenova (Toronto) on October 20, 2020 Posted in Financial institutions, M&A

There is no doubt that the Covid-19 pandemic has resulted in unprecedented social and economic ramifications, including a decline in M&A activity in Canada. The pandemic has also brought in changes to the way agreements are being drafted in light of what has become our new normal. Earlier, we reported that the pandemic has led … Continue reading

Let’s see the money! Debt finance options in M&A

By Eric Vice on February 14, 2020 Posted in Finance, Financial institutions, M&A

In many cases purchasers in an M&A deal will obtain debt financing to cover a portion of the purchase price. Fortunately, in Canada the options for acquisition financing are plentiful. Common ‘types’ include: Senior Debt: the Bank Loan Banks and other senior lenders can design a range of tailored solutions to purchasers’ funding needs. Broadly … Continue reading

Location, location, location: Where’s your chief executive office?

By Russell Dufault (Toronto) on November 15, 2019 Posted in Finance, Financial institutions

In the context of cross-border secured financing transactions involving Canada and the United States, the rules relating to perfection and priority of personal property pledged in favour of a lender or agent are similar. In the U.S., Article 9 of the Uniform Commercial Code governs while each Canadian jurisdiction has its own personal property security … Continue reading

2019 M&A activity off to a strong start in financial services

By Troy Ungerman (Toronto) on June 25, 2019 Posted in Financial institutions, M&A

M&A activity in the financial services sector has opened with a solid start. According to a KPMG quarterly update, the Q1 2019 report is the second highest than any other quarter since 2016 by deal volume. This positive start to the year suggests that the 11 percent increase in transaction volume last year may continue … Continue reading

Borrowers, beware: Bank of Canada announces interest rate hike

By Troy Ungerman (Toronto) on July 24, 2018 Posted in Financial institutions, M&A

Recently, Bank of Canada governor Stephen Poloz announced an increase in the interest rate from 1.25% to 1.5%. The increase comes as the Bank of Canada predicts a continued growth in the Canadian economy from exports and business investments. However, household spending may represent a smaller percentage of future economic growth due to the effects … Continue reading

Regulatory reform signals potential spike in M&A activity involving US financial institutions

By Troy Ungerman (Toronto) on April 5, 2018 Posted in Financial institutions, M&A

On March 14, 2018, the US Senate voted (67-31) to advance S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Bill). The Bill, which will only become law with approval from the House and Congress, marks an unprecedented, bipartisan compromise to ease banking rules enacted following the 2008-09 financial crisis. If enacted, there may soon … Continue reading

Big data analytics in the context of M&A

By Troy Ungerman (Toronto) on August 15, 2017 Posted in Finance, Financial institutions, M&A

Big data analytics (big data) has established a reputation as a tool useful in the financial services arena, where it has enhanced banks’ abilities to personalize data of their customers to predict trends. More recently, big data is becoming popular in the context of mergers and acquisitions in all sectors. What is big data analytics? … 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

FinTech M&A: a wave or just a ripple?

By nrfdigitalteam on August 10, 2016 Posted in Corporate finance, Financial institutions, M&A

While the rapid and exponential growth of Financial Technology (FinTech) companies appear to signal an impending wave of M&A, certain impediments exist that may mitigate these projections. FinTech companies develop and market technologies that facilitate a variety of financial transactions through electronic mediums. Since 2010, over 80 FinTech companies in Canada have garnered about $1 … Continue reading

Spotlight on Ukraine: a promising future for M&A activity

By Matthew Lau (Toronto) on April 28, 2016 Posted in Corporate finance, Financial institutions

In March 2014, this blog featured an article discussing the effect of the recent crisis in Ukraine on M&A activity. The crisis began in November 2013 when Ukrainians protested en masse after then-president Viktor Yanukovych failed to sign an association agreement with the European Union. Yanukovyvh was ousted in February 2014. During that time and … Continue reading

What can companies learn from PE sharks?

By Jacob Cawker (Toronto) on April 20, 2016 Posted in Corporate finance, Financial institutions, Pharmaceuticals and life sciences, Technology and innovation

Divestment is one strategy that a corporation can use to unlock funds for future growth and create long‑term shareholder value. According to a recent E&Y study, a successful divestment must meet three criteria: (i) it must create a positive impact on the valuation multiple of the remaining company; (ii) it must generate a sale price … Continue reading

Year in review: deal drivers in the Americas in 2015

By Troy Ungerman (Toronto) on February 25, 2016 Posted in Corporate finance, Financial institutions, Pharmaceuticals and life sciences, Technology and innovation

Mergermarket recently released its 2015 full-year edition of Deal Drivers Americas (the Review). This comprehensive review of M&A activity in the Americas confirmed that 2015 was a year of mega-deals. Transactions involving giants such as Pfizer, Time Warner Cable, and Kraft contributed to an increase of 30% in M&A value, reaching a total of US$4.28 … Continue reading

New Year’s resolution: buying & selling smart

By nrfdigitalteam on January 26, 2016 Posted in Corporate finance, Energy, Financial institutions, Pharmaceuticals and life sciences, Technology and innovation

2015 was a huge year for global M&A with deal activity reaching $4.2 trillion by the middle of December. If 2016 continues at the same pace, be prepared for a big year of M&A activity. In order to be well equipped for the upcoming year, ask yourself the following two questions when contemplating an M&A … Continue reading

When committing to a third party, make sure your bank is committed to you

By Noah Schein (Toronto) on December 15, 2015 Posted in Corporate finance, Financial institutions

A recent article in The Secured Lender magazine titled “Avoiding Lender Liability Claims: When Words and Actions Matter” canvassed lender liability claims and the steps lenders should take to avoid being held liable in certain circumstances to a borrower, guarantor or third party. Many of the suggestions are similarly relevant to borrowers (as purchasers in … Continue reading

Global M&A in the first half of 2015

By Troy Ungerman (Toronto) on August 4, 2015 Posted in Corporate finance, Energy, Financial institutions, Infrastructure, mining and commodities, Real estate

Similarly to American M&A in the first half of 2015, the first half of 2015 was remarkably active on the global mergers and acquisitions front. According to a recent Mergermarket report, total deal value topped US$1.7 trillion. This represents an increase of 15.2% over the first six months of 2014, and only 15.4% behind the record-setting … Continue reading

Mid-market deals dominate in Canadian M&A in Q1 2015

By Troy Ungerman (Toronto) on June 10, 2015 Posted in Corporate finance, Financial institutions, Infrastructure, mining and commodities, Real estate, Technology and innovation

Crosbie & Company’s quarterly Canadian M&A Report has indicated an overall decline in activity for the first quarter of 2015, with total deal volume down 7% and total value down 46% from the previous quarter. Deal size Accounting for the decrease in deal value is the fact that the majority of transactions this quarter took place … Continue reading

M&A trends in the Middle East

By Troy Ungerman (Toronto) on January 8, 2015 Posted in Corporate finance, Financial institutions

Deal-making in the Middle East is on the rise. Consumer confidence is improving, credit is more readily available, and capital markets are maturing. However, the region still faces several challenges as investors remain cautious, looking for increased due diligence and post-closing protection. Encouraging trends According to speakers at the Megatrends in Mergers & Acquisitions conference … 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

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

Use of M&A insurance on the rise

By on May 31, 2012 Posted in Corporate finance, Financial institutions

Forecasts of increased M&A activity, combined with a global economic climate where risk aversion is the name of the game, present an opportune moment for examining M&A insurance as a viable means of reducing risks in business transactions. The most common type of transaction insurance is Representation and Warranties (R&W) insurance, which targets the net … Continue reading

M&A trends look positive in 2012

By on May 15, 2012 Posted in Corporate finance, Financial institutions

Grant Thornton recently released its 20th annual International Business Report on M&A in which it suggests the market for M&A looks strong both globally and in Canada, as businesses look to invest cash resources built up over a period of slow M&A activity. Based on our experience, we have certainly noticed an increase in M&A … Continue reading