Deal count reached a seven-year high in Canada last year, but there has been a loss of momentum in the first half of 2019. On-going trade conflicts and concern over a possible market correction have generated greater economic uncertainty, and
interest rates
Borrowers, beware: Bank of Canada announces interest rate hike
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,…
The interesting thing about M&A is…
Many predicted that 2017 would be another record year for Canadian mergers and acquisitions (M&A). There are also currently some predictions that interest rates will continue to rise despite the recent announcement of a contraction in the economy.…
Canadian M&A expected to rise in 2017
Fuelled by low interest rates, strong corporate balance sheets and stable finances, 2016 was a strong year for Canadian M&A. Looking forward, Citi Canada, in association with Mergermarket, surveyed a range of Canadian dealmakers to gauge their expectations for Canadian…
Bank of Canada maintains historically low overnight rates and reserved outlook for 2017 and 2018
On December 7, the Bank of Canada (the Bank) announced that it will be maintaining its overnight rate at 0.5%, closing out a year of historically low interest rates. The overnight rate is the interest rate at which large…
2017 M&A outlook
As 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…
Money makes the world go ‘round: lender protections in leveraged acquisitions
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…
Dealmaking in a negative interest rate environment
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…
Reflections on American M&A performance in the first half of 2015
As seen elsewhere in this blog, the volume of global mergers and acquisitions (M&A) in the first half of 2015 (H1 2015) reached near record-setting heights. According to a recent report from Deallogic, the total…
The effect of rising interest rates on M&A activity
In recent report entitled The conflict of interest? Rising rates effects on M&A, MergerMarket was commissioned by Toppan Vite to examine the effect of potential rising interest rates on the effect of M&A activity in the coming year.
U.S.…