• About
  • Events
  • Offices
  • Careers
  • Students
  • Media
Background Image
Bennett Jones
  • People
  • Services
  • Experience
  • Insights
Search By:
 
Find a Person
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z all
People
Services
Experience
Insights
Offices
About
Media
Search
Aboriginal Law
Accountant Liability Litigation
Agribusiness, Food & Beverage
Anti-Spam Law
Appellate Advocacy & Judicial Review
Arbitration
Asset/Equipment Finance & Leasing
Aviation
Banks & Financial Institutions
Bermuda & Caribbean
Biotech, Pharma & Lifesciences
Cannabis Law
China
Class Action Litigation
Climate Change
Commercial Litigation
Commercial Real Estate
Commercial Transactions
Competition/Antitrust
Constitutional Law
Construction
Corporate Finance
Corporate Governance
Cybersecurity
Defamation
Defence & Security
Employment Services
Energy
Energy Litigation
Environmental Law
Estate Litigation
Financial Services
Fintech & Blockchain
Forestry
Franchising
Fraud Law
Gaming & Hospitality
Governmental Affairs & Public Policy
Health Law
India
Infrastructure & Project Development
Intellectual Property Law
Intellectual Property Litigation
International Arbitration
International Trade & Investment
IT & Business Services
Mergers & Acquisitions
Middle East & North Africa
Mining
Oil & Gas
Payment Solutions
Pensions & Benefits
Power & Renewables
Privacy & Data Protection
Private Equity & Capital Funds
Procurement & Outsourcing
Product Liability
Product Regulation
Project Finance
Property Development & Real Estate
Regulatory
Restructuring & Insolvency
Retail
Securities Litigation
Shareholder Activism & Critical Situations
Structured Finance & Asset Securitization
Tax
Tax Litigation & Dispute Resolution
Technology Law
Technology, Media & Entertainment
Trading & Derivatives
Transfer Pricing
Transportation
United States of America
Venture Capital
Wills, Estates & Trusts
 

Private Equity Sees Bright Prospects in Canada: Bennett Jones PE Study

September 19, 2018

Contact Us
 
Subscribe
Print
Share
Share
Twitter
LinkedIn
Email

Sustained growth in the Canadian economy and heightened competition for deal flow amongst private equity and other institutional investors continue to make Canada an attractive destination for U.S.-based PE investors. According to a new study commissioned by Bennett Jones, Due North: U.S. Private Equity Sets Sights on Canada, U.S. investment firms will continue to dedicate resources to sourcing opportunities in Canada, drawn by a perception of lower valuations and the opportunity to deploy meaningful capital, all while remaining relatively close to home.

The report, conducted by Mergermarket, an Acuris company, is based on a survey of Canadian and U.S. PE executives, as well as Canadian portfolio company executives. It finds the top sectors for investment in Canada are consumer goods (24 percent), industrials and chemicals (22 percent), oil and gas (14 percent) and technology (14 percent).

“Canada remains an attractive destination for U.S. investors, notwithstanding certain challenges facing the Canadian economy. The total value of private equity deals continues to reach new heights,” says John Mercury, Vice Chair, Clients and Industries at Bennett Jones. “The time was ripe to look deeper into the area, to better understand the motivations driving investment decisions and to help identify opportunities for our clients.”

Respondents in Due North said key aspects of investing in the Canadian market include:

  • rapid business growth and global connections are twin priorities for Canadian companies and U.S. PE firms;
  • local market knowledge is key for investors to understand the Canadian market and make sound investment decisions; and
  • building relationships in Canada is the best way to identify a Canadian-based target.

Canada/U.S. trade relations and impacts from the overhauled U.S. tax code present potential challenges to dealmakers’ optimism. 48 percent of respondents say they are very concerned about the effects of trade uncertainty and 36 percent say U.S. tax reform will make Canadian targets less attractive on the whole.

Despite these headwinds, survey respondents were largely optimistic about the prospects for PE investment in Canada. They make clear that the rewards can be substantial for the diligent and patient investor, and explain that present challenges can be overcome.

Additional highlights from respondents in Due North include:

  • Sixty-eight percent said Canada’s economic expansion would be the top factor attracting PE investors to the country.
  • Sixty percent said the smaller number of potential buyers and lower valuations compared to the United States make the Canadian market appealing.
  • Forty-two percent said the ability to use “waterfall” economics or flow-through structures was the most important factor when structuring a deal in Canada.

DOWNLOAD

Read the full private equity report and survey results.

Go

About Mergermarket

Mergermarket is a business development and market intelligence tool designed specifically for the M&A sector and provides proprietary intelligence and analysis on corporate strategy across the world. With around 200 M&A journalists talking directly to senior executives, dealmakers and other key players in over 60 locations globally, Mergermarket reports on the whole deal life cycle, from mapping out companies’ early stage strategic intentions to tracking deals before they develop and providing real-time news on live events, thereby creating a large window of opportunity. Subscribers can also mine for trends, patterns and deal ideas using Mergermarket’s comprehensive deals database and regular data-driven editorial analysis and commentary. Visit www.mergermarket.com to learn more.

About Bennett Jones

Bennett Jones is one of Canada's premier business law firms and home to 400 lawyers and business advisors. With deep experience in complex transactions and litigation matters, the firm is well equipped to advise foreign businesses and investors with Canadian ventures, and connect Canadian businesses and investors with opportunities around the world.

Media Contact

Peter Zvanitajs
Senior Communications Advisor
Bennett Jones
T: 416 777 6128 | C: 437 999 6214
E: zvanitajsp@bennettjones.com
W: www.bennettjones.com
Subscribe
Share
Share      
 
Twitter
LinkedIn
Email
 

Key Contacts

  • John M. Mercury John M. Mercury, Partner and Vice Chair, Clients and Industries
  • Jonathan  McCullough Jonathan McCullough, Partner

Looking Forward: Class Actions in 2019

Download now

Related Links

  • Insights
  • Media
  • Subscribe

Related Expertise

  • Private Equity & Capital Funds

Recent Posts

Announcements

Bennett Jones a 2019 Top Employer in Alberta for Ninth Year in a Row

February 20, 2019
       

Updates

ABQB Clarifies Test for Lifting the Stay to Replace an Insolvent Operator

February 20, 2019
       

In the News

Denise Brundson on Access to Justice for French-Speaking Albertans

February 19, 2019
       

Updates

Not Just Linear Property Tax Priorities: Alberta Court of Appeal on Abuse of Process and Mootness

February 19, 2019
       

Updates

Pre-Budget Analysis of Government Finances

February 19, 2019
       

Articles

Foreign Arbitral Deference Still Trending In Canadian Courts

February 15, 2019
       

Updates

Canada Increases Steel Quota for Mexico and Drops Surtax on Re-Imported Canadian Steel

February 15, 2019
       

Announcements

Bennett Jones in Chambers Global 2019

February 14, 2019
       

Speaking Engagements

Tales from the Trenches

February 14, 2019
       

Firm Information

  • People
  • About
  • Recruitment
  • Anti-Spam Learning Centre
  • Kickstart
  • Client Extranet

Offices

  • Calgary
  • Edmonton
  • Ottawa
  • Toronto
  • Vancouver
  • New York
  • United States of America
  • Beijing
  • Doha

Stay Connected

Careers

  • Privacy Policy
  • Disclaimer
  • Terms of Use

© Bennett Jones LLP 2019 All rights reserved. Bennett Jones refers collectively to the Canadian legal practice of Bennett Jones LLP and the international legal practices and consulting activities of various entities which are associated with Bennett Jones LLP

Bennett Jones