Topic: Technology and innovation

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Smart contract applications in M&A: earn-outs

By Mark Bissegger (Toronto) on November 22, 2017 Posted in M&A, Technology and innovation

This blog has previously provided an overview of how blockchain technology and smart contracts might be adapted to the legal industry. In this post, we will explore the specific example of how these technologies may be able to simplify an earn-out agreement in an M&A transaction. What are earn-outs? In an earn-out, the seller of … Continue reading

Adding value through tech deals

By Troy Ungerman (Toronto) on October 31, 2017 Posted in M&A, Technology and innovation

A new report by BCG asks the question of whether wading into tech deals can add value to companies. Based on BCG’s analysis of 37,000 tech acquisitions, the returns from such deals are mixed: about half generate positive returns for acquirers. This is the case regardless of whether the buyer itself is in the tech … Continue reading

M&A: the automotive industry’s new fuel?

By nrfdigitalteam on October 24, 2017 Posted in M&A, Technology and innovation, Transport

Automotive technologies are evolving rapidly and impacting not only drivers’ automotive experiences but also, the automotive industry more broadly. From assistive technologies like bicycle sensors and back-up cameras to self-driving technologies, it appears that technological innovation will be critical in order for automotive companies to maintain their relevance and competitive edge in the marketplace. However, … Continue reading

Artificial intelligence: real results

By Troy Ungerman (Toronto) on August 9, 2017 Posted in M&A, Technology and innovation

Earlier this year, we discussed the increasing use of technology in the M&A deal process. To recap, a recent Mergermarket study revealed that the use of technology and big data were likely factors in the increasing frequency of unsolicited bids and corresponding decrease in frequency of broad auctions. Building on our earlier discussion, we now … Continue reading

Blockchain technology: an imminent driver of investment and M&A

By Matthew Lau (Toronto) on August 8, 2017 Posted in M&A, Technology and innovation

Blockchain technology has been making headlines since it emerged in 2009 in connection with the cryptocurrency Bitcoin. We’ve covered the potential use of Bitcoin in M&A transactions in previous articles in 2016 and 2014. As discussed in these articles, the volatility and lack of central authority has so far meant that the cryptocurrency plays a … Continue reading

Modern M&A deal process: focus on negotiated sales and increased usage of technology

By Bruce Sheiner on June 8, 2017 Posted in M&A, Technology and innovation

Technology is increasingly playing a bigger role in M&A deals, transforming the way transactions are priced, negotiated and completed. The use of different platforms is facilitating transmission of deal information to a wider group, and as a result, crucial stages in a deal can now be done remotely and simultaneously by several deal parties. Moving … Continue reading

M&A trends: augmented and virtual reality

By Matthew Lau (Toronto) on May 25, 2017 Posted in M&A, Technology and innovation

Since Facebook’s $3 billion acquisition of Oculus VR – a company that develops and manufactures virtual reality headsets – augmented and virtual reality technology has become a major topic of discussion in the M&A world. For those who are new to this emerging industry, virtual reality is an artificial, computer-generated simulation of a real life … Continue reading

New cybersecurity requirements for DFS-regulated entities

By Troy Ungerman (Toronto) on March 23, 2017 Posted in M&A, Technology and innovation

New cybersecurity requirements for Department of Financial Services (DFS)-regulated entities took effect on March 1, 2017. The New York DFS created these requirements in response to recent or potential threats to sensitive electronic information, particularly financial information and private consumer information. EY’s report provides an overview of the new framework with implications for the affected entities. … Continue reading

Back to the basics: the business value in keeping human interaction

By Troy Ungerman (Toronto) on February 9, 2017 Posted in M&A, Technology and innovation

In today’s market, there is significant buzz around phrases such as automation, artificial intelligence, cloud computing, robotics and the like. Many businesses are investing in the fast-paced technology sector and innovating outdated systems for customer engagement. For example, earlier this year, the first U.S.-based robotic café opened its (figurative) doors to patrons in San Francisco, … Continue reading

Technology M&A outlook

By Troy Ungerman (Toronto) on February 8, 2017 Posted in M&A, Technology and innovation

KPMG LLP’s survey predicts M&A deal levels in 2017 will be steady from 2016, with the technology industry leading expectations for high activity. This follows from 2016’s profile for tech M&A deals, which had EY’s Global technology M&A report for Q3 2016 highlighting digital technologies as driving tech M&A deals for both tech and non-tech … Continue reading

Artificial intelligence M&A: the new gold rush

By Troy Ungerman (Toronto) on December 14, 2016 Posted in M&A, Technology and innovation, Uncategorized

While many people are still in shock after discovering that there is actually no human controlling the steering wheel in autonomous cars, tech companies, including Google, IBM, Yahoo, Intel and Apple, have found themselves in the middle of a gold rush for artificial intelligence (AI) companies. According to recent research by CB Insights, around 140 … Continue reading

M&A transactions between fintech companies and traditional banks

By Denise Gan (Toronto) on November 23, 2016 Posted in Finance, M&A, Technology and innovation

Financial technology (fintech) companies like Square, Wealthsimple and Mint are already having disruptive effects in their respective industries, changing the way Canadians pay for goods and services, invest their savings, and manage their finances. A recent survey shows that Canadians are becoming less dependent on traditional banks given the variety of options to self-manage their … Continue reading

Merging of digital and physical worlds: impact on M&A in non-digital industries

By Troy Ungerman (Toronto) on November 10, 2016 Posted in M&A, Technology and innovation

Strategy& of PwC published Mergercast “Digital Deals – A New Frontier” (Episode 56) in July 2016, which discusses the growing rationale for digital deal-making and post-deal challenges. Particularly, this podcast identifies that digital deals accounted for nearly 32% of all transactions in 2015, up by 20% since 2011, indicating the growing appetite for digital M&A. … Continue reading

A global overview of M&A activity: August 2016

By Troy Ungerman (Toronto) on October 18, 2016 Posted in Energy, Infrastructure, mining and commodities, M&A, Pharmaceuticals and life sciences, Technology and innovation

MergerMarket Group recently published its September edition of Monthly M&A Insider which reported on mergers and acquisitions activity around the world for the month of August 2016. More than two thirds into the year, August was no exception to the recent rather sluggish growth in M&A activity, especially compared to the record-breaking year for M&A … Continue reading

The year of technology M&A

By Troy Ungerman (Toronto) on October 13, 2016 Posted in M&A, Technology and innovation

Despite the 18% drop in the volume of mergers and acquisitions as compared to last year, one sector that has not lost a step is the technology sector. As of June this year there have been about $260 billion in tech deals announced globally, as has been shown by Dealogic data, making it clear that … Continue reading

M&A activity in the healthcare sector is on the rise

By Troy Ungerman (Toronto) on October 4, 2016 Posted in M&A, Pharmaceuticals and life sciences, Technology and innovation

M&A activity in the healthcare industry has been on an upwards trend since our last update. Good Foundations: Building Healthcare M&A and Real Estate, a report by Mergermarket on deal-making trends in the industry, found that about 90% of the respondents expect healthcare M&A to rise over the next year. The value of healthcare deals in … Continue reading

Deal maker or deal breaker? Information security during M&A

By Troy Ungerman (Toronto) on August 2, 2016 Posted in M&A, Technology and innovation

The Ontario Securities Commission (OSC) recently published its Statement of Priorities for the Financial Year to End March 31, 2017 (the Statement). The Statement unveils a new area which the OSC intends to focus its key resources and actions on – cyber resilience. For many, this does not come as a surprise, particularly given the high-profile … Continue reading

M&A update in the global technology industry for Q1 2016

By Troy Ungerman (Toronto) on July 13, 2016 Posted in Technology and innovation

According to a report recently published by Ernst &Young (EY) entitled “Global technology M&A report: 1Q16 final look – Digital disruption, slow organic growth drive tech deals”, mergers & acquisitions in the global technology industry remained strong in Q1 2016, despite macroeconomic uncertainty particularly in the equity and debt markets. Interestingly, the deal volume in … Continue reading

What can companies learn from PE sharks?

By Jacob Cawker (Toronto) on April 20, 2016 Posted in Corporate finance, Financial institutions, Pharmaceuticals and life sciences, Technology and innovation

Divestment is one strategy that a corporation can use to unlock funds for future growth and create long‑term shareholder value. According to a recent E&Y study, a successful divestment must meet three criteria: (i) it must create a positive impact on the valuation multiple of the remaining company; (ii) it must generate a sale price … Continue reading

Year in review: deal drivers in the Americas in 2015

By Troy Ungerman (Toronto) on February 25, 2016 Posted in Corporate finance, Financial institutions, Pharmaceuticals and life sciences, Technology and innovation

Mergermarket recently released its 2015 full-year edition of Deal Drivers Americas (the Review). This comprehensive review of M&A activity in the Americas confirmed that 2015 was a year of mega-deals. Transactions involving giants such as Pfizer, Time Warner Cable, and Kraft contributed to an increase of 30% in M&A value, reaching a total of US$4.28 … Continue reading

New Year’s resolution: buying & selling smart

By nrfdigitalteam on January 26, 2016 Posted in Corporate finance, Energy, Financial institutions, Pharmaceuticals and life sciences, Technology and innovation

2015 was a huge year for global M&A with deal activity reaching $4.2 trillion by the middle of December. If 2016 continues at the same pace, be prepared for a big year of M&A activity. In order to be well equipped for the upcoming year, ask yourself the following two questions when contemplating an M&A … Continue reading

Acquisition: the key to innovation

By Troy Ungerman (Toronto) on August 26, 2015 Posted in Corporate finance, Technology and innovation

It has become increasingly difficult to deny that we live in an age of technological innovation – particularly entrepreneurial innovation. Many cities across Canada contain the components of an ideal start-up environment: a diverse culture receptive to innovation, top quality educational institutions, and willing investors. According to a 2012 report by Canadian Business, Western Canada … Continue reading

An overview of global M&A activity in May 2015

By Troy Ungerman (Toronto) on June 30, 2015 Posted in Corporate finance, Technology and innovation

In the month of May 2015, global mergers and acquisition activity was calm as deal value totalled US$348.1bn, which represents an increase of 14% since April 2015 and an increase of 27% over May 2014. However, total deal volume fell 8.5% since April and 30.9% compared to May of the previous year, with a total … Continue reading

Mid-market deals dominate in Canadian M&A in Q1 2015

By Troy Ungerman (Toronto) on June 10, 2015 Posted in Corporate finance, Financial institutions, Infrastructure, mining and commodities, Real estate, Technology and innovation

Crosbie & Company’s quarterly Canadian M&A Report has indicated an overall decline in activity for the first quarter of 2015, with total deal volume down 7% and total value down 46% from the previous quarter. Deal size Accounting for the decrease in deal value is the fact that the majority of transactions this quarter took place … Continue reading