Tag archives: US election

Final quarter deals add to hopes of M&A activity in 2017

As was predicted in our discussion of Q4 2016 here, the last quarter of the year proved to be busy. Global M&A in the final quarter reached $1.2 trillion, which was not only the busiest period in 2016, but also raised the total for M&A to $3.6 trillion. Although the total value of deals decreased by 17 per cent from 2015, the final flurry of large takeovers allowed 2016 to reach the second-highest total since the financial crisis in 2007, according to the Financial Times.

Chinese companies in particular demonstrated their ability to be a major force in … 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

North American M&A decline in 2016

As has been discussed previously, M&A activity in North America declined in 2016 as compared to 2015. A recent survey published by Toppan Vite and MergerMarket of 25 top US-based dealmakers regarding North American M&A in 2016 delves further into the reasons for this decline.

Roughly half of the respondents to the survey believed that the M&A market underperformed in 2016 and mainly attributed the decrease in North American M&A activity to the US presidential election, the United Kingdom’s decision to leave the European Union (Brexit), the political turmoil in Russia and Ukraine and depressed oil prices. … Continue Reading

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 institutions, including banks, lend money amongst themselves and is one of the main levers that the Bank can pull in order to effect a particular monetary policy. It forms the basis for other interest rates throughout the economy and, in theory, low borrowing rates incentivize deal-making. We have blogged before about the effect of interest rates on M&A deals, including … 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

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