Professional services firm BDO Canada supported over $19 billion of transactions last year with more than 70% involving private capital.
TORONTO - Deal making in Canada continued to remain strong for most of 2022, after a record year of transactions in 2021. In 2022, advisory, assurance and tax, firm BDO Canada supported more than 180 transactions with a combined deal-value of over $19 billion. Among these deals, transactions involving private capital accounted for more than 70% of the projects completed.
The transaction market began to cool in Q4-2022 and into Q1-2023, due to rising interest rate costs and overall economic uncertainty; however there continues to be strong demand for M&A and capital advisory services, largely driven by private capital transactions.
Michael Morrow, Leader of M&A and Capital Markets at BDO Canada said, “We continue to see robust M&A activity in the markets we serve. Succession planning issues continue to be the driving force fueling the need to transition businesses while corporate and financial buyers are well capitalized and seeking to grow by acquisition in a low-growth economy. While deal-making continues to work through headwinds, there continues to be a significant amount of dry powder ready to be deployed.”
Sunil Sharma, Leader of Private Equity & Transaction Services stated, “Many of our private capital clients, while cautious, are keen on deploying capital. As the public markets continue to face challenges, we expect to see opportunities with take privates. Further, we expect private equity funds to focus on tuck-in acquisitions as a means of value creation, utilizing deals to acquire talent, customers or new products and services.”
Further reading: BDO Canada's 2022 Deals in Review
BDO Canada LLP is a leading provider of professional services to clients across a variety of sectors and segments. For over 100 years, our team has served communities across Canada through a comprehensive range of assurance, tax, and consulting services, complemented by deep industry knowledge. With over 5000 people across 100 offices in Canada, and more than 1,800 offices in 164 countries, BDO is well-positioned to assist clients with both domestic and global needs.
BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO member Firms. For more information, visit: www.bdo.ca.
To learn more about BDO Canada's deal activity, please contact:
Partner and Managing Director, M&A and Capital Markets
National Leader, M&A and Capital Markets
Partner, Transaction Services
National Leader, Private Equity