Making Private M&A Transactions Happen in a Challenging Economic Market, Lexpert
Goodmans' Randy McAuley and Julian Di Bartolomeo share insights on the creative solutions dealmakers will need moving forward.
Excerpt from "Making Private M&A Transactions Happen in a Challenging Economic Market":
Canadian and global M&A markets showed record-setting transaction activity following the start of the COVID-19 pandemic in 2020 through to mid-2022. Despite operational disruptions, governmental restrictions, and supply chain issues, a low-interest rate environment and a surplus of dry powder readily available to private equity investors drove increases in market activity. By contrast, current geopolitical and economic factors, including higher interest rates, persistent inflation, and the threat of an economic recession, are now contributing to a decrease in deal activity. Canadian M&A deal volume declined by over 20% in Q1 2023 compared to Q1 2022 and Global M&A deal volume hit a 12-month low in May 2023.
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