(Toronto) A PwC Canada report suggests a slight recovery in the Canadian mergers and acquisitions market, but the firm warns that uncertainty surrounding the new administration of President-elect Donald Trump risks delaying certain transactions.
Posted at 1:40 p.m.
The report, released Tuesday, indicates a stabilization of the Canadian mergers and acquisitions market and signs of a slight recovery.
Between 1isJuly and November 30, 2024, 1,068 transactions were concluded in Canada, for a total value of 227 billion.
PwC Canada reports a slight increase in the financial services and private equity sectors.
In the first half of 2025, the report anticipates a continuation of the slightly upward trajectory, with a steady increase in activity as the year progresses.
On the other hand, the uncertainty surrounding customs tariffs and the maintenance of free trade in North America could delay transactions that would otherwise have taken place in Canada, maintains the report from the professional services firm.
On the other hand, the market could see an increase in the number of transactions concluded by Canadian companies, if they wish to establish themselves in the United States to potentially reduce the risk of losing market share.
The PwC Canada report also highlights the “persistent problem” of a “productivity gap in Canada.”
“Canada’s productivity crisis means Canadian businesses must take immediate action to ensure their long-term success. The uncertainty created by possible policy changes from the new U.S. administration, combined with the accelerating digital revolution and increasing geopolitical risks, adds a new layer of challenges for Canadian businesses,” said Michael Dobner, partner and national leader, PwC Canada Economic Analysis, in a press release.
“However, these multiple challenges provide negotiators with a unique opportunity to be an integral part of the solution, by developing and implementing procurement strategies that address these challenges,” he added.
