Canadian Mid-Market M&A by Deal Size

  • Posted By: Ari Cuperfain

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  • Comments: 0

Historically, the majority of Canadian transactions valued between US$5-500 million fall in the US$5-50 million range by deal count. Since 1Q 2012, 55-70% of transactions were in the US$5-50 million range, 23-39% of deals were in the US$50-250 million range, and only 2-8% of mid-market deals were in the US$250-500 million range. While deal activity was low in 1Q 2015, the share of activity from deals worth less than $50 million was at the high end of the historical range and has been trending upward for the last three quarters. 

We also note that there is significant under-reporting of transaction metrics for smaller deals and that the share of activity in the $5-50 million category is actually much larger than reported.

Although the deals between US$250-500 million only make up 2-8% of total deals, they have accounted for 11-42% of total deal value. In 1Q 2015, the five deals in this category represented only 7.5% of total deals, but accounted for just over 40% of total dollar volume.

Next we will look at Canadian M&A activity by acquirer origin and address the correlation between deal size and foreign interest. If you found this post interesting, you may want to explore our 2014 Canadian Private Equity Report where we discuss trends in private equity as they pertain to the Canadian market.

Source: Capital IQ

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