2017 was an excellent year for Canadian mid-market M&A, with substantial increases in both volume and value for transactions up to US$500m. According to data from Thomson Reuters, there were 2,690 deals with a total value of $32bn during the year – an increase of 67.8% by volume and 28% in terms of value. The most active industries were real estate (accounting for 19.8% of total deal value), energy and power (19.3%), materials (14.5%), and industrials (10.4%). All other industries represented less than 10%.
We expect mid-market M&A activity in Canada to remain strong through 2018, driven by factors including the baby boom generation of business owners facing retirement, high market valuations, increased competition for privately owned businesses from non-traditional buyers such as family offices, pension funds and search funds, and low borrowing costs