Q1 2018 update: Canadian deal volume and value take a dip
The Canadian M&A market slowed its pace in the first quarter of 2018, with deal volume down 7% compared to Q1-17. This is in line with global M&A activity which saw a similar 7.5% decline in the first quarter of the year.
Canadian transaction value was also down in Q1-18 with only five ‘mega deals’ – transactions with a value of greater than $1 billion, primarily driven by consolidation in the Real Estate sector.
Conditions are in place for healthy M&A activity in the months ahead. The sweeping changes to US Tax reform approved in late 2017 haven’t yet reshaped the North American deals environment, but the combination of a positive economic cycle and plenty of available capital for companies pursuing growth indicate that 2018 will likely continue to see a very active M&A market.