Tag archives: M&A

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

Transforming Adversity into Opportunity: The Need for New Technologies Fuels Insurance M&A

By nrfdigitalteam on Posted in M&A, Technology and innovation
The COVID-19 pandemic has changed the way in which we interact with the world. From working, to shopping, to socializing, most aspects of our daily lives have moved to the online world. Consumers now expect effective online platforms for all goods and services, and businesses have been forced to adapt quickly. The need for robust … 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

Lower 2021 thresholds announced for merger reviews under Competition Act and Investment Canada Act

By nrfdigitalteam on Posted in Antitrust, competition and regulatory
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 2021. Thresholds under both statutes decreased slightly, meaning more transactions may be reviewable or notifiable, respectively, than in 2020. Competition Act Canada uses a two-part test … 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

Goodwill Hunting: The Value, Protections and Role of Intangible Assets in M&A Transactions

By nrfdigitalteam on Posted in Intellectual property, M&A, Technology and innovation
We have previously discussed goodwill as a distinct asset in purchase agreements.  In this post, we explore the growing value of goodwill and other intangible assets in mergers and acquisitions (M&A) and the legal issues parties should consider when seeking to value, protect and exploit these assets. Intangible assets are often the most significant portion … 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

Post-Closing Adjustments

Photo of Eric ViceBy Eric Vice on Posted in M&A
Previously, we wrote about the use of earn-outs as a means by which buyers mitigate the risk of a target’s post-closing under-performance by holding back part of the purchase price and paying it out as the target meets certain financial targets.  In this post, we examine a related topic that is often confused with earn-outs … 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

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

Photo of Olga Lenova (Toronto)By Olga Lenova (Toronto) on 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

Representations and Warranties Insurance and COVID-19 Considerations

By nrfdigitalteam on Posted in M&A
The use of representations and warranties insurance (RWI) has grown dramatically in recent years as buyers (and to a lesser extent, sellers) have increasingly relied on RWI to allocate risks and provide other benefits in M&A transactions. The COVID-19 pandemic and its economic impacts have led to significant uncertainty for buyers, as well as for … Continue reading

Determining fair value in appraisal proceedings: the Supreme Court of Canada dismisses application for leave to appeal in Carlock v ExxonMobil Canada Holdings ULC

By nrfdigitalteam on Posted in Litigation, M&A
On August 13, 2020, the Supreme Court of Canada (the SCC) dismissed the application for leave to appeal in the case of Carlock v ExxonMobil Canada Holdings ULC (Carlock), indicating that the negotiated deal price in a transaction between well-informed, sophisticated, arms-length parties that is the result of a vigorous sale process provides strong objective … Continue reading

COVID-19 Series: Considerations and Modifications of Certain Provisions in M&A Agreements (Valuation and Post-Closing Pricing Mechanisms)

By nrfdigitalteam on Posted in M&A
In recognition that businesses are adjusting to their “new normal” and some companies are exploring acquisitions or divestitures as opportunities to strengthen their bottom line, we will be publishing a series of blogs aimed at highlighting some of the considerations and key drafting areas in a purchase and sale agreement that parties to Canadian private … Continue reading

Fintech M&A Activity in 2020: The Digital Economy is Here

By nrfdigitalteam on Posted in M&A, Technology and innovation
Paying for Payments While uncertainty arising from the COVID-19 pandemic has slowed down most deal activity, Fintech, in particular the payments space, is a big exception. Recent analysis from KPMG revealed that UK payment deals in the first quarter of 2020 alone exceeded the total number of deals in 2019. Granted, deal sizes were relatively … Continue reading
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