Canada's M&A Landscape and Deal Making Trends: Q1 2024

Written By Kwang Lim, Osie Ukwuoma and Mia Bacic
April 17, 2024

United States and global M&A rebounded in the first quarter of 2024, powered by the return of mega deals worth US$10 billion or more. According to Bloomberg, global deal values are up about 21 percent year-on-year to more than US$660 billion in the first three months of the year, with the United States leading the charge.

By contrast, in Canada, M&A activity has been lagging so far this year. Deal value declined by US$4 billion in Q1 2024, compared to the same period last year and deal count dropped from 811 to 618. The number of deals in Q1 was up for the second straight quarter, however. The increase in M&A globally and particularly in the U.S. is a welcome development—and a potentially promising sign for the Canadian market.

Deal making trends we are following as we move through 2024 include:

  • The appetite for deals, not for debt
  • How investor interest in generative AI can translate into more M&A activity
  • The growing use of NAV loans, preferred equity and the continued availability of co-investment opportunities in PE
  • What's behind longer transaction timelines in M&A deals
  • An increased reliance on representation and warranty insurance

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