Tag archives: M&A trends

The (Artificial) Intelligent Investor

By nrfdigitalteam on Posted in M&A, Technology and innovation, Uncategorized
Investor advice platforms, at both the retail and institutional level, have evolved in recent years – from the use of classic literature to expanded services offered by brick-and-mortar firms. However, with the growth of app-induced innovation, various robo-advising platforms have taken the lead in providing investors with seamless, efficient, and cost-effective means of advice. We … Continue reading

Full Speed Ahead: Post-Pandemic Trends in M&A

Photo of Brandon SchuppBy Brandon Schupp on Posted in M&A
After a nine-year low in 2020, M&A activity in Canada made a strong rebound in the first quarter of 2021. As reported by BNN Bloomberg, in the first three months of 2021, Canadian companies were involved in 1,168 deals that together totalled US $115 billion in value, dwarfing the US $44.3 billion in deal value … Continue reading

Funding M&A Deals with Bitcoin

Photo of Alexandra DavidBy Alexandra David on Posted in M&A, Technology and innovation
As Bitcoin gains increasing traction since its inception 11 years ago, we begin to question whether it will slowly replace traditional dollar funding in M&A deals. Whether Bitcoin will be used to fund large M&A deals will likely depend on its ability to stabilize in value. One of the most common concerns of using Bitcoin … Continue reading

Visiting the Doctor in a Virtual World Provides Business Opportunities in Telehealth

By nrfdigitalteam on Posted in M&A, Technology and innovation
It is no secret that during 2020 and into 2021 the COVID-19 pandemic has created massive disruptions for a variety of industries. One such example is the movement of health care services online in order to adhere to social distancing guidelines. A wide variety of technology and applications to facilitate this, referred to as telehealth … Continue reading

Earn-outs and reverse earn-outs

Photo of Kiri BuchananBy Kiri Buchanan on Posted in M&A
In May, we wrote about the increased focus on earn-out provisions during the pandemic as a method to mitigate the risk of a target’s post-closing under-performance and to bridge any valuation gap between the purchaser and seller. More recently, we discussed post-closing balance sheet adjustments as a separate tool to address the same risk. In … Continue reading

“To the Moon”: The Rise of the Retail Investor and What this Means for Dealmakers

By nrfdigitalteam on Posted in Corporate finance, M&A
Retail investors are becoming an increasingly significant source of capital on public markets, and dealmakers should be aware of how this development can impact M&A transactions and the decision to go public. After the latest garnering of widespread attention in the news, the retail investment community has been estimated to constitute as much as 25% … Continue reading

MAC/MAE Clauses in the Context of COVID-19

Photo of Troy Ungerman (Toronto)By Troy Ungerman (Toronto) on Posted in M&A
A recent Ontario decision of Fairstone Financial Holdings Inc. v. Duo Bank of Canada (“Fairstone”) became the first Canadian case to consider material adverse change (“MAC”) or material adverse effect (“MAE”) clauses in the context of COVID-19.  In Fairstone, Duo Bank of Canada sought to invoke the MAC/MAE clause to exit the transaction but the … Continue reading

Does board diversity lead to better M&A outcomes?

By nrfdigitalteam on Posted in M&A
Board diversity has been at the forefront of the Canadian governance landscape for a number of years, and has recently been the subject of increased stakeholder focus. While gender and racial parity are ends in themselves, recent research shows that board diversity may be particularly beneficial in the M&A context. The current state of affairs … Continue reading

Digital Taxation – Novel Considerations in M&A Transactions

Photo of Alexandra DavidBy Alexandra David on Posted in M&A, Tax
Digital taxes have become a subject of significant debate in recent years. Following allegations that tech giants have paid very little tax anywhere in the world, some countries have moved to impose new taxes on profits derived from digital services provided by multinational enterprises on a jurisdiction-specific basis. For instance, France recently adopted a digital … Continue reading

The Dynamic Duo: Cyber-security and Due Diligence during the COVID-19 Pandemic

By nrfdigitalteam on Posted in M&A, Technology and innovation
The widespread impact of the COVID-19 pandemic (“pandemic”) continues to highlight the several ways in which M&A transactions have had to adapt to changing times, particularly by ramping up cyber-security measures in a digital world. Prior to the pandemic, there already existed a shift towards cyber-security due diligence since many businesses relied on digital assets. … Continue reading

What’s the Alternative?: The Rise of Alternative M&A Deals in a Post-COVID World

Photo of Abigail Court (Toronto)By Abigail Court (Toronto) on Posted in M&A
Mergers and acquisitions activity was already off to a slow start when 2020 began, but the COVID-19 pandemic (the “Pandemic”) initially resulted in a further decline in the volume of M&A activity. This was due in part to the economic and commercial uncertainties and market volatility for buyers and sellers alike, which made it difficult … Continue reading

The Smart Choice: A Predictive View in Revamping M&A Contracts

By nrfdigitalteam on Posted in M&A, Technology and innovation
The current pandemic presents a unique opportunity to revitalize traditional M&A process and provisions. While we have previously addressed how traditional M&A provisions are impacted by the pandemic, this blog post will explore the key opportunity industries and corporations alike have in improving contractual processes. Specifically, through the use of blockchain technology and smart contracts. … Continue reading

M&A Opportunities in the COVID-19 Digital Transformation

By nrfdigitalteam on Posted in M&A, Technology and innovation
While the COVID-19 pandemic initially had a general chilling effect on merger and acquisition (“M&A”) activity, we have seen an increase in M&A activity recently, particularly as industries rapidly adapt to the new environment and consider opportunities. Both consumer preferences and business models have been forced to change quickly due to the circumstances of the … Continue reading

M&A in the Consumer & Retail Sector: Before and After the Pandemic

By nrfdigitalteam on Posted in M&A
This article will provide a high level discussion of M&A trends in the Consumer & Retail (C&R) sector, beginning with a brief summary of the activity we saw in 2019, what trends were anticipated to occur in 2020 and how the COVID-19 pandemic (the Pandemic) is expected to affect M&A in this industry. Pre-Pandemic Trends … Continue reading

Diamond In The Rough: Mining as a potential bright spot in M&A

By nrfdigitalteam on Posted in Infrastructure, mining and commodities, M&A
The mining sector has been one of the few bright spots in Canadian M&A since the COVID-19 pandemic drastically changed the landscape for transactions, with several large deals announced and continuing despite the pandemic. As with other business sectors, mining has been significantly impacted by regulations and the economic slowdown caused by the pandemic. However … Continue reading

Timely, or too soon? Competition Bureau releases guidance on “failing firm” claims in merger reviews

Photo of Erika WoolgarBy Erika Woolgar and nrfdigitalteam on Posted in Antitrust, competition and regulatory, M&A
On April 29, in a rare decision based on the “failing firm” rationale, the Competition Bureau announced it would not challenge the acquisition of Total Metal Recovery (TMR) Inc. by American Iron & Metal Company Inc. (AIM), because TMR would have likely exited the market without the merger. The Bureau released a detailed position statement … Continue reading

Canadian Government Announces New Policy Applying “Enhanced Scrutiny” to Certain Foreign Investments During COVID-19

By nrfdigitalteam on Posted in Antitrust, competition and regulatory, M&A
Market Contraction The financial markets and global economy have experienced a precipitous decline and substantial volatility due to the economic impact of the ongoing COVID-19 pandemic. This has had a significant and immediate impact on the level of M&A activity, both in Canada and globally, as companies are shelving deals or simply walking away entirely. … Continue reading

Earnouts: Sharing Risk and Reward in Uncertain Times

Photo of Eric ViceBy Eric Vice on Posted in Corporate finance, M&A
The turbulent economic environment resulting from the COVID-19 pandemic has affected the M&A world in numerous ways. Among them is the increased focus on earnout provisions, both those in place from legacy deals and those being considered for inclusion in an upcoming transaction. This post provides an overview of the earnout mechanism and describes the … Continue reading

Private Equity Exits During COVID-19: What the 2008 Crisis Can Teach Us

Photo of Abigail Court (Toronto)By Abigail Court (Toronto) on Posted in Corporate finance, M&A
In a previous post, we discussed the impact of COVID-19 on private equity transactions and how companies can prepare for upcoming economic changes. While opportunities for new investment are on the horizon with private equity funds presently flush with cash, movement on existing investments is likely to slow as sellers wait until markets stabilize before … Continue reading

Looking Beyond COVID-19: How Companies Can Prepare for the Post-Pandemic Economy

By nrfdigitalteam on Posted in M&A
As COVID-19 continues to sweep across the world, it is has undoubtedly taken the global financial markets by storm. Despite the unprecedented social and economic disruptions brought by the pandemic, Ernst & Young’s Capital Confidence Barometer Survey (the Survey) of more than 2,900 C-suite executives globally shows that more than half (56%) of them continue … Continue reading

2020 merger review thresholds for Competition Act and Investment Canada Act

By nrfdigitalteam on Posted in Antitrust, competition and regulatory, M&A
The threshold for certain pre-closing net benefit reviews under the Investment Canada Act (ICA) and the threshold for a pre-closing merger notification under the Competition Act have now both been released for 2020. The Commissioner of Competition announced on April 1 that the threshold would remain the same as in 2019. Competition Act Canada uses a two-part test for … Continue reading
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