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MARKET UPDATE

117 M&A transactions closed last month, 28.0% lower than the average monthly transaction count over the previous ten years. As of May 31, M&A activity year-to-date is down 16.3% versus 2024. Cash on corporate balance sheets in North America was $4.7 trillion (USD). There was approximately $1.3 trillion (USD) of private equity dry powder, representing roughly $2.6 trillion (USD) in latent acquisition capacity when debt funding is factored in.

While Canadian M&A activity has been subdued in early 2025, factors such as interest rate cuts, private equity capital deployment pressures, and increased inbound interest suggest a cautiously optimistic outlook for the remainder of the year.

VALITAS INSIGHTS

Opaque Lending Market: At Valitas Capital Partners, we focus on discovering and unleashing value for our clients. In this article, we explore why running a competitive financing process is the only way to surface the outlier proposal that optimizes your risk of default, available liquidity, and cost of capital.