Kwang Lim speaks with Law.com on how Canadian dealmaking delivered a surprisingly robust performance in the third quarter of 2025, defying earlier forecasts of a sluggish environment amid lingering macroeconomic and geopolitical uncertainty, especially surrounding tariffs.
“It’s looking pretty bright . . . there’s a continuation of frothy activity in technology, industrials, manufacturing, and energy and resources,” said Kwang, who added that despite expectations that there would be a substantial slowdown in cross-border transactions post-tariffs, US buyers continued to see opportunities for Canadian targets.
Deal structures have also become increasingly complex, especially as a means to bridge valuation gaps between buyers and sellers, leading companies to be more open and flexible, said Lim. This has prompted an increased use of tools like earn-outs, equity rollovers, and minority positions with future acquisition rights.
According to S&P Global Market Intelligence, Q3 deal numbers (announced, closed, or pending) involving a Canadian company hit more than US$126 billion with 2,170 deals year-to-date valued at US$317 billion as of October, 20, 2025. At the same point in 2024 there were about 60 more deals, but their overall value was substantially lower, at US$182 billion.
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Bennett Jones