Topic: Technology and innovation

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Uses of blockchain in the M&A process

By Troy Ungerman (Toronto) on June 20, 2019 Posted in Technology and innovation

We have previously explored some potential uses of blockchain in the M&A process. Generally, blockchain refers to a growing list of blocks linked by cryptography. Each block contains a timestamp and a link to the previous block. When a new block is added to the growing list, it is verified by independent parties on the … Continue reading

A-I Captain! Know the legal risks of buying an AI company… or go down with the ship

By Troy Ungerman (Toronto) on May 7, 2019 Posted in M&A, Privacy and data protection, Technology and innovation

On February 21, 2019, Blackberry completed its acquisition of Cylance, a privately-held artificial intelligence (AI) and cybersecurity company. Acquisitions of AI companies like Cylance are becoming increasingly common as businesses seek to realize the opportunities in offering much-improved products or services to their customers. Canada, in particular, has become a hotspot for activity in the … Continue reading

Fintech is thriving! Global investment more than doubles in 2018

By Troy Ungerman (Toronto) on April 11, 2019 Posted in Finance, Technology and innovation

KPMG recently published its “Pulse of Fintech” report on global investment in fintech for H2 2018. Here’s what you need to know: Global investment in fintech companies hit $111.8B in 2018 (with 2,196 deals), more than doubling global fintech investment in 2017. This was partly due to a small number of mega deals. In the … Continue reading

Narwhals, unicorns and profits – Canadian tech start-ups are on the rise

By Troy Ungerman (Toronto) on March 28, 2019 Posted in M&A, Technology and innovation

Unicorns and narwhals – what business do these creatures have in boardrooms and on stock exchanges? “Unicorn” and “narwhal” are industry terms used to describe certain private start-up tech companies. “Unicorns” are start-ups valued by investors at $1B or more, a rare and substantial feat that has earned them their mythical nickname. “Narwhals” sit a … Continue reading

3D printing – the manufacturing industry’s “comeback kid”

By Olga Lenova (Toronto) on March 26, 2019 Posted in Technology and innovation

Speed. Scale. Diversity. What do these words have in common? According to Deloitte, they are the three main reasons that 3D printing, also known as additive manufacturing (AM), is experiencing a sustained resurgence in 2019. Deloitte recently published the 18th edition of its Technology, Media & Telecommunications Predictions report, which forecasts both global and regional … Continue reading

The impact of 5G technology on M&A

By Troy Ungerman (Toronto) on January 29, 2019 Posted in M&A, Technology and innovation

Global M&A activity in the technology, media and telecommunications industry reached an all-time high of 3,389 deals in 2018. The year was marked by several of the largest merger valuations in history, even though 70% of deals were for less than $100 million, demonstrating that much of the M&A activity was driven by smaller companies. … Continue reading

Strategies for parenting start-ups, post-acquisition

By nrfdigitalteam on January 17, 2019 Posted in M&A, Technology and innovation

In recent years, we have seen more acquisitions of start-ups by big corporations in the tech industry, healthcare, retail, fashion, beauty, food, and transportation. The benefits of M&A transactions in these sectors has been more widely recognized. For instance, for a start-up, partnering with a large corporation provides broader market access, deeper industry knowledge and … Continue reading

Technology and creativity: keys to unlocking real estate?

By nrfdigitalteam on December 11, 2018 Posted in Real estate, Technology and innovation

With increasing globalization, shifting demographics and advancing technologies, just to name a few, society is changing rapidly. These changes, as reflected by evolving tastes, preferences and needs, influence both how and where people live and work. As part of their joint publication, Emerging Trends in Real Estate 2019 (the Report), PwC and the Urban Land … Continue reading

Record year predicted for the cybersecurity industry

By nrfdigitalteam on November 29, 2018 Posted in M&A, Technology and innovation

With a growing reliance on technology, it does not come as much of a surprise that the importance of cybersecurity is increasing as well. In its Mid-year Market Review, Momentum Cyber reported that $2.3 billion had already been lost as a result of cryptocurrency breaches. This staggering loss may be one of the many reasons … Continue reading

Managing information technology risk to improve M&A outcomes

By Troy Ungerman (Toronto) on November 1, 2018 Posted in M&A, Technology and innovation

An organization’s technology systems are an integral part of its business. Integrated into all aspects of its operations, the possible failure of these systems has been the top concern in Allianz Group’s survey of over 1,900 risk management experts for six straight years. High profile incidents such as the Visa service outage, where a systems … Continue reading

Canadian venture capital investment continues to increase in H1 2018

By Troy Ungerman (Toronto) on September 6, 2018 Posted in Corporate finance, Technology and innovation

The Canadian Venture Capital & Private Equity Association recently published its 2018 first half (H1 2018) report on Canadian venture capital (VC) and Canadian private equity (PE) investment. While Canadian PE investment remains feeble, Canadian VC investment has continued to climb to incredible heights. A review of the increasing trends in Canadian VC investment, with respect … Continue reading

Quebec opens its door to InsurTech: opportunities to grasp

By nrfdigitalteam on September 4, 2018 Posted in M&A, Technology and innovation

The insurance industry is changing. A more digitally savvy customer base and the emergence of new technologies are reshaping the sector. Enter technology-led companies known as “InsurTechs.” In Québec, this innovative business approach along with a substantial legislative change is expected to increase M&A transactions. Mindful of offering a regulatory environment that is flexible and apt … Continue reading

M&A and the advancement of the RegTech industry

By Troy Ungerman (Toronto) on August 14, 2018 Posted in M&A, Technology and innovation

The rapid advancement of technology has moved at an unprecedented pace, offering the ability to automate “trust” and “quality” of the products and services being provided on a daily basis. Nevertheless, after the financial crisis in 2008, billions of fines and penalties were imposed on companies that failed to carry out regulatory standards. This exposed market inefficiencies … Continue reading

Digitalization – the pill for M&A failures?

By nrfdigitalteam on July 19, 2018 Posted in M&A, Technology and innovation

It is a generally accepted fact that a significant number of M&A deals fail to deliver value post-closing. In a recent survey (the Survey) discussed in the Deloitte 2018 M&A trends report (the Report), 55% of respondents agreed that up to 25% of their M&A deals fall short of meeting or beating expectations. We’ve discussed … Continue reading

A forward look into emerging technologies in M&A

By Troy Ungerman (Toronto) on July 2, 2018 Posted in M&A, Technology and innovation

As previously noted, businesses are keen to shine their spotlights on the surge of disruptive technology, particularly with the opportunities it stands to introduce, the existing standards it proposes to displace, and the upside it promises for bottom lines. In recent years, the rise of disruptive technology has created a boom for some industries while potentially … Continue reading

Evaluating the risks of open source software in M&A transactions

By Troy Ungerman (Toronto) on June 26, 2018 Posted in M&A, Technology and innovation

Open source software (OSS) has emerged as a significant market disruptor in recent years. OSS serves as an alternative to commercial software licensing wherein the licensee does not need to pay for the license. This tends to make it particularly attractive to start-ups attempting to keep their costs down. However, the free use of the … Continue reading

Regulators comment on securities law implications for offerings of tokens

By Matthew Lau (Toronto) on June 19, 2018 Posted in Corporate finance, Technology and innovation

On June 11, 2018, the Canadian Securities Administrators (“CSA”) published Staff Notice 46-308 Securities Law Implications for Offerings of Tokens (“Notice”). The Notice follows from the CSA’s previous guidance in Staff Notice 46-307 Cryptocurrency Offerings, where the CSA explained that many cryptocurrency offerings involve the distribution of securities and are therefore subject to securities laws … Continue reading

The tech takeover: disruptive technology as a driver of M&A

By nrfdigitalteam on April 11, 2018 Posted in M&A, Technology and innovation

A relentless parade of new technologies is unfolding on many fronts – one of which includes the M&A scene. While not every emerging technology will alter a business’ landscape, certain technologies have the potential to disrupt the status quo, alter the way companies operate and rearrange value pools. These “disruptive technologies” can quickly displace established … Continue reading

Global automotive M&A ends 2017 in high gear with no signs of slowing down

By Troy Ungerman (Toronto) on March 15, 2018 Posted in M&A, Technology and innovation, Transport

As seen in this recent PwC article, global automotive M&A activity was strong in 2017. Automotive deal value increased 29.9% to $53.2b from 2016 to 2017 primarily as a result of two mega deals in the Auto-Tech sector, which PwC defines as “investments in connectivity, autonomous, electrification, ride-sharing and the software, sensors, intellectual property and … Continue reading

Canadian M&A: a look back 2017 and a glimpse into 2018

By Troy Ungerman (Toronto) on March 1, 2018 Posted in M&A, Technology and innovation

A retrospective look at 2017 In Canada, 2017 had the highest number of mergers and acquisitions (M&A) deals in the past five years. There were a total number of 2,274 deals carried out in 2017, compared to 1,956 in 2016. The number of “mega deals”, however, did not see an increase in 2017. “Mega deals” … Continue reading

Top M&A attractions in 2018: technology assets and international markets

By Troy Ungerman (Toronto) on February 13, 2018 Posted in M&A, Technology and innovation

According to Deloitte’s latest M&A trends report, corporations and private equity (PE) firms expect to see an acceleration of M&A activity in 2018, both in volume and size of deals, and with particular interest in technology assets and international markets. Key Findings After surveying more than 1,000 executives at corporations and PE firms on their … Continue reading

Don’t be fooled! How traditional M&A differs from digital M&A

By Troy Ungerman (Toronto) on January 17, 2018 Posted in M&A, Technology and innovation

Over the past few years, we have seen a rising trend in digital technologies driving tech M&A deals for both tech and non-tech companies. Technology brings its own set of challenges to the M&A space. The following are some of the many differences between traditional and digital M&A: Wider target list: The list of targets … Continue reading

Keeping real estate on trend with RealTech

By Troy Ungerman (Toronto) on January 9, 2018 Posted in M&A, Real estate, Technology and innovation

The impact of technology can be felt across virtually all sectors of the economy and real estate is no exception. In fact, technology affects all aspects of real estate from its procurement and development to its management and use. Real estate-specific technology is often aptly referred to as “RealTech”. Explaining RealTech The KPMG White Paper, … Continue reading

Why some tech M&As fail to deliver value

By nrfdigitalteam on January 4, 2018 Posted in M&A, Technology and innovation

In a recent blog post, we explored the reasons why a sizable number of M&A deals fail to complete every year. As discussed in that post, the closing of an M&A deal does not necessarily announce the success of a transaction. In fact, as high as 60% of M&A deals fail to deliver value even after a … Continue reading