Monthly Canadian M&A Report

Month Ended October 31, 2022

MARKET UPDATE

Two-hundred and fifty-eight Canadian M&A transactions closed last month. Year-to-date, the M&A closed deal count is 20.4% lower than the comparable period in 2021. The Canadian dollar relative to the USA appreciated by 2.69 cents, ending the month at 75 cents. The TSX outperformed the S&P 500 by 0.3% in U.S. dollar terms. The price of WTI Crude oil increased by 17.6%, ending the month at $92.61 per barrel.

VALITAS INSIGHTS

Managing the Due Diligence Grind. That dollar figure, whether written on a napkin over coffee, or floated in a conversation is not a binding offer. Any potential acquirer will need to conduct a due diligence investigation before they can enter into a definitive agreement to buy your business. Initial indications can be tactically inflated to ensure the acquirer gains access to your confidential information after which this price is systematically reduced, citing negative findings during due diligence.