Market Insights Financial Corporate Finance

Mergers and Acquisitions - Canada

Canada

The transaction value in the Mergers and Acquisitions market is projected to reach €82.16bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 1.28% resulting in a projected total amount of €83.21bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to €81.12m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (€1,260.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in Canada is experiencing a notable increase in activity, reflecting a growing trend in the country's business landscape.

Customer preferences: In Canada, customers in the M&A market are showing a preference for strategic acquisitions that can provide synergies and competitive advantages. Companies are looking to expand their market share, diversify their product offerings, and enhance their technological capabilities through acquisitions that align with their long-term goals.

Trends in the market: One of the key trends in the Canadian M&A market is the rise of cross-border transactions. Canadian companies are increasingly looking beyond their borders to acquire foreign businesses, tapping into new markets and leveraging international opportunities. Additionally, there is a noticeable increase in private equity involvement in M&A deals, indicating a growing interest from investors in the Canadian market.

Local special circumstances: Canada's unique economic and regulatory environment plays a significant role in shaping the M&A market. The country's stable political climate, strong rule of law, and well-developed infrastructure make it an attractive destination for both domestic and foreign investors. Moreover, the presence of industry-specific regulations, particularly in sectors like energy and natural resources, influences the types of M&A activities taking place in the country.

Underlying macroeconomic factors: Several macroeconomic factors contribute to the development of the M&A market in Canada. The country's robust GDP growth, low interest rates, and favorable business conditions create a conducive environment for M&A activity. Additionally, demographic shifts, technological advancements, and changing consumer preferences are driving companies to pursue strategic acquisitions to stay competitive in the market.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.