Monthly Canadian M&A Report

Month Ended July 31, 2022

MARKET UPDATE

Two-hundred and forty-eight Canadian M&A transactions closed last month. Year-to-date, the M&A closed deal count is 16.8% lower than the comparable period in 2021. The Canadian dollar relative to the USA appreciated by 0.33 cents, ending the month at 78 cents. The TSX underperformed the S&P 500 by 8.4% in U.S. dollar terms. The price of WTI Crude oil fell by 17.9%, ending the month at $94.57 per barrel.

VALITAS INSIGHTS

In every sale transaction, there is a “window of vulnerability” for the seller that starts with the initiation of sale discussions with a potential buyer and ends with the closing of the sale. Three key risks present themselves during this window: a) Completion Risk, b) Valuation Risk, and c) Damage to your business by potential bidders. Exposing your business to lengthy sale discussions with any party dramatically increases all of these risks. To ensure that this window of vulnerability is as short as possible, it’s critical that you thoroughly prepare for a structured, competitive transaction process. Click below to find out more.