Tag archives: innovation

Purchasing Companies That Sell Technology to the Government: The Details Matter

Procurement contracts are increasingly used in both Canada and the United States (US), particularly with respect to technological services. Federal procurement expenditures for Canada amount to an average of CAD $22 billion in goods and services annually. Further, the US typically awards USD $500 billion in contracts annually, with Canadian companies actively participating in that market.

Where an acquirer is purchasing or investing in a vendor selling to government entities, the diligence process and subsequent transaction documents should carefully consider the risks arising from such dealings. Government contracting with respect to technological services, such as cloud computing, provide unique risk … Continue Reading

Acqui-hiring: What we know and what we need to know from a Canadian perspective

“Acqui-hire” transactions, which are particularly prevalent in the context of start-up technology-related M&A transactions in the U.S., focus on acquiring a company primarily to obtain its employees and their skills, in addition to other possible assets (see our earlier post on acqui-hires). In these type of transactions, it is thought that the greatest perceived value in the target lies in its employee base or segment(s) thereof. If there is also perceived value in the intellectual property (IP) or other assets of the target company, an acquiror might purchase those assets and possibly license them back. In some cases, … Continue Reading

Examining data analytics in M&A

The M&A world continues to evolve as transactions are becoming more diverse and complex. Timelines are getting shorter and acquirors have less time to assess their targets but more pressure to justify their acquisitions. Acquirors must simplify the process of acquiring a target, while simultaneously improving the accuracy of their predictions about the acquisition’s profitability. Could data analytics be one of the solutions?

More data is being created today than ever before. Generally, there are two kinds of data relevant to M&A transactions. The first is data created by companies spontaneously (e.g. social media chatter, CRM data, user … 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

Artificial intelligence M&A: the new gold rush

While many people are still in shock after discovering that there is actually no human controlling the steering wheel in autonomous cars, tech companies, including Google, IBM, Yahoo, Intel and Apple, have found themselves in the middle of a gold rush for artificial intelligence (AI) companies. According to recent research by CB Insights, around 140 AI companies have been acquired since 2011, and the number of AI startup M&As has increased more than seven fold between 2011 and 2016. In fact, the race to invest in AI has been characterized as “the latest Silicon Valley arms Continue Reading

Acquisition: the key to innovation

It has become increasingly difficult to deny that we live in an age of technological innovation – particularly  entrepreneurial innovation. Many cities across Canada contain the components of an ideal start-up environment: a diverse culture receptive to innovation, top quality educational institutions, and willing investors. According to a 2012 report by Canadian Business, Western Canada has become somewhat of a start-up “hot spot”, with 3.7% of British Columbia’s working population owning a start-up, which the report defines as a business under two years of age. Unsurprisingly, then, start-ups play an important role in Canada’s economy.

But how does this … Continue Reading

Media sector M&A on the rise

youtube-680x220In a recent article, The New M&A Trend that is Shaking Up the Media Sector, Forbes reported on M&A deals involving mobile-driven, digital first content companies, a type of transaction which is starting to dominate the M&A deal space. Although the article speaks to several different trends in the sector, it’s noted that the most dominant trend involves an uptick in multi-channel network (MCN) deals. The value of these deals multiplied seven-fold between 2013 and 2014—from $200 million to $1.4 billion—and consulting firms are saying these numbers will only continue to grow.

YouTube defines MCNs as “entities … Continue Reading

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