Canadian Mid-Market M&A by Industry

  • Posted By: Ari Cuperfain

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  • Comments: 1

The most striking change with the Canadian middle-market industry breakdown is in the commodity sectors. Energy deals made up a mere 7.8% of 1Q 2015 Canadian mid-market transactions by deal count. Our data dates back to 1Q 2000, and 1Q 2015 activity had the lowest contribution from the energy industry in any recorded quarter. With low oil prices and the resulting pressure on strategic capital, industry consolidators within the energy sector have slowed their activity significantly. The slowing of deal activity in this sector has had a major impact on the Canadian market as a whole, including mid-market M&A.

While correlated with energy and commodities in general, the proportion of deals in the materials industry was not significantly impacted. In fact, the decrease in energy transactions has artificially inflated the proportion of deals in the materials sector. Likewise, the proportion of transactions in the industrials and B2C sectors was largely unchanged in 1Q 2015. Due to the largely publicly funded and operated Canadian healthcare system, healthcare remained a small contributor to overall M&A deal activity in the Canadian mid-market in contrast with escalating activity in the U.S. health sector. Information technology remains selective and remains highly variable from one quarter to the next.

The proportion of real estate deals has remained relatively constant over the past three years. This category includes a small number of transactions from other financial services as well, such as banks, insurance and diversified financials.

Next we will look at Canadian mid-market M&A activity by deal size to see which size categories contribute most significantly to the Canadian M&A market. 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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