Tag archives: EY

Cannabis: a budding Canadian industry

Last week, we covered EY’s recently released report (the Report) surveying the bourgeoning cannabis sector in Canada.

The impending legalization of cannabis has weighty implications for the Canadian economy, but may also impact the global markets more broadly. Capital markets, the jobs market, mergers and acquisitions activity and intellectual property, among others, stand to be significantly affected.

This is an unprecedented opportunity for the country to be the global leader in the cannabis space, to shape the regulatory framework for cannabis around the world and to spur innovation and economic productivity – The Report

Review

Following the most … Continue Reading

M&A: the automotive industry’s new fuel?

Automotive technologies are evolving rapidly and impacting not only drivers’ automotive experiences but also, the automotive industry more broadly. From assistive technologies like bicycle sensors and back-up cameras to self-driving technologies, it appears that technological innovation will be critical in order for automotive companies to maintain their relevance and competitive edge in the marketplace. However, such innovation is complicated and largely outside of the auto industry’s wheelhouse. As a result, merger and acquisition (M&A) activity may be just the tool that these companies need for harnessing this innovation and competing effectively.

The automotive industry transformation

As alluded to … Continue Reading

Big data analytics in the context of 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?

Big data refers to the collection and analysis of large volumes of structured and unstructured data, in real-time to create value for companies. Big data’s opportunity to leverage unstructured data is the real value-add it provides for companies. Unstructured data refers to … Continue Reading

Canadian M&A market maintains strong position as global investment destination

According to reported results from E&Y’s recent Global Capital Confidence Barometer survey, Canada’s mergers and acquisitions (M&A) market is expected to remain strong despite the current climate of geopolitical uncertainty, with 62% of Canadian respondents actively pursuing deals (compared to 48% six months ago). It was also reported that, for the fifth time in a row, Canadian respondents expect to pursue acquisitions at a rate above the past average, with Canadian, U.S. and global respondents reporting being bullish on the Canadian and global economy. The report noted that, while 2016 M&A activity did not exceed 2015, a strong … Continue Reading

New cybersecurity requirements for DFS-regulated entities

Deal Law Wire - Norton Rose FulbrightNew cybersecurity requirements for Department of Financial Services (DFS)-regulated entities took effect on March 1, 2017. The New York DFS created these requirements in response to recent or potential threats to sensitive electronic information, particularly financial information and private consumer information. EY’s report provides an overview of the new framework with implications for the affected entities. A main goal is to protect information systems of the affected entities and the non-public information stored in those systems.

The new cybersecurity requirements include indications for the below-noted areas. An annual statement certifying compliance with these requirements must be submitted to … Continue Reading

Back to the basics: the business value in keeping human interaction

coffee-680x220In today’s market, there is significant buzz around phrases such as automation, artificial intelligence, cloud computing, robotics and the like. Many businesses are investing in the fast-paced technology sector and innovating outdated systems for customer engagement. For example, earlier this year, the first U.S.-based robotic café opened its (figurative) doors to patrons in San Francisco, serving reasonably priced espresso drinks with a robotic arm behind a large pane of glass. Only one human is present to administer the machine and assist customers with orders. With the changing face of consumer interaction, it is demanded of businesses to act progressively, so … Continue Reading

Technology M&A outlook

Deal Law Wire - Norton Rose FulbrightKPMG LLP’s survey predicts M&A deal levels in 2017 will be steady from 2016, with the technology industry leading expectations for high activity. This follows from 2016’s profile for tech M&A deals, which had EY’s Global technology M&A report for Q3 2016 highlighting digital technologies as driving tech M&A deals for both tech and non-tech companies. Digital technologies that drove deals include internet of things (IoT), smart mobility, cloud/SaaS, big data, security, advertising and marketing technologies, connected cars, payment and financial technologies, gaming, and health care IT.

Deal value

In Q3 2016, the average value per tech M&A deal was … Continue Reading

Optimistic M&A outlook for 2017

As we begin 2017, the 1,000 corporate and private equity executives surveyed for Deloitte’s M&A Trends Year-end report 2016 display optimism for the coming year. The survey was conducted in September 2016 and included participants from companies or private equity firms with annual revenues of $10 million or more, representing 18 industries.

Respondents expect a rebound year from 2016, with 86% of surveyed private equity and 71% of surveyed corporate dealmakers expecting to close more deals this year. Not only is deal volume expected to increase, but 64% of all respondents also expect deal size to increase. Divestitures appear poised … Continue Reading

Trends in Canadian cross-border M&A

In recent years, cross-border M&A activity involving Canadian companies has soared, and 2016 gave rise to a record high in cross-border deal value. In Q3 2016 alone, Canadian companies were involved in cross-border transactions worth over CDN$77.7 billion, easily eclipsing the CND$21.7 billion in deal value from the previous quarter and representing 41% of all Canadian announcements. In particular, outbound deal volume continued to outpace inbound deal volume by a ratio of 1.7:1, confirming to Ed Giacomelli, Managing Director at Crosbie & Company, “the strategic importance to Canadian corporations of growth by acquisition.”

In a recent report by Mergermarket … Continue Reading

2017 M&A outlook

Business peopleAs 2016 draws to a close, Ernst & Young has released its 15th edition of its Global Capital Confidence Barometer (the GCCB), which looks forward toward the trends and expectations in the M&A market for 2017. The GCCB is survey of more than 1,700 senior executives, including 52 Canadian executives, from large global companies located in 45 countries around the world, representing 18 industry sectors.

This past year was an active time for M&A and according to the GCCB, this trend will continue into the new year. In total, 57% of all executives surveyed plan to make acquisitions … Continue Reading

Five months after Brexit: domestic UK M&A drops to 30 year low

In the days leading up to the June 23, 2016 Brexit referendum, we discussed Brexit’s potential impact on the M&A market: Britain without the EU: how will Brexit affect dealmaking? Today, we take a look at how those predictions have held up five months after the historic vote.

Domestic UK M&A down 62%

As predicted, economic and political uncertainty has created a hostile deal environment for domestic UK M&A. According to Thomson Reuters, the value of deals between UK companies has dropped 62% since the vote to a 30-year low. A lack of large deals may be to blame … Continue Reading

What can companies learn from PE sharks?

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 above expectations; and (iii) it must close ahead of its timing expectations. Only 19% of the companies surveyed for the study met all three criteria. Considering that divestiture activities are likely to increase in 2016 (a more detailed discussion on 2016 divestiture outlook can … Continue Reading

Global M&A appetite: executives continue to be hungry

Executives around the world have a strong appetite to pursue acquisitions, the highest in six years, according to Ernst & Young’s Global Capital Confidence Barometer (the Report), released at the end of October. The bi-annual Report details how despite market volatility, companies have confidence in deal-making and are pursuing growth opportunities and acquisitions at increasingly high rates. Companies are not only pursuing acquisitions in their own sector, but looking outside their traditional sectors and across borders. The Report highlights how executives are focused on “sustainable” growth, to both safeguard against the cost-cutting measures required over the past decade, but … Continue Reading

Canadian Mining Eye Index looking up in Q2

According to an Ernst and Young report released on August 24, 2015, the Canadian Mining Eye index experienced a 4% gain in Q2 2015, as compared to a 1% loss in Q1 2015. This increase was the first quarterly gain for the index since Q2 2014. While the quarterly results in the sector reported by EY were not all positive, the gain is certainly a welcome development.

EY’s Canadian Mining Eye index tracks the performance of 100 TSX and TSX Venture mid-tier and junior companies with market caps generally between CDN$100m and CDN$1.7bn. Q2 saw the Canadian Mining Eye index … Continue Reading

M&A in Canada: industry revenue and profits

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 2015. While such expansion does not on its own drive M&A activity, it is important factor for identifying trends. Industries with the greatest growth may see increased M&A activity in the future; likewise industries with prolonged under-performance may be primed for consolidation.

Banking

1

The … Continue Reading

M&A expectations on the rise

SkyscrapersEY has recently released the 12th edition of its annual Global Capital Confidence Barometer, a biannual survey of more than 1,600 executives of companies in 54 countries, assessing various metrics in global mergers and acquisitions. Although 2014 marked the single largest increase in M&A since the financial crisis of 2008, for the first time in five years, more than half of the respondents of the survey indicated that they are planning acquisitions in the next year, signalling recovered earnings and cash positions, or at the very least, increased optimism regarding the trajectory of markets. The survey points out … Continue Reading

M&A in the media and entertainment industry: going over the top

E&Y has reported that the media and entertainment (M&E) industry will experience a record high number of M&A deals in the coming year.The report surveyed executives associated with film, television, gaming, and print and digital media. Forty percent of respondents are anticipating acquisitions, with more deals in the pipeline thereafter.   

Inorganic growth can be a way for companies to explore opportunities related to intellectual property, technology, new geographical markets, and content. M&A is particularly attractive in the current Canadian market. We are seeing confidence in the stability of the economy; a sign that companies may be making more … Continue Reading

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