Monthly Canadian M&A Report

Month Ended January 31st, 2023

MARKET UPDATE

194 M&A transactions closed last month, 20% lower than the average transaction count over the last ten years. As of January 31st, M&A activity is down 43.3% versus 2022. Cash on corporate balance sheets in North America increased by 10% from December to $2.2 trillion (USD). There was approximately $2.0 trillion (USD) of private equity dry powder, which represents approximately $4.0 trillion (USD) in latent acquisition capacity when debt funding is factored in. However, rising cost of capital has depressed public equity valuations. Low public equity valuations and increased borrowing costs hinder M&A deal volume.

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