A great snapshot from PwC Canada's M&A year in review and 2023 outlook which shows that 54% of Canadian corporate leaders are not planning to delay deals in 2023.
Within the private company space, deals in energy, utilities, mining and industrials have been a consistent favorite, taking the top spot in 2022 and 2021 in terms of deal value with tech, media and telecommunications slipping behind.
While the energy, utilities and mining sectors saw deal volumes and values declining in 2022, deal activity remains robust in certain subsectors, including critical and battery minerals and renewable energy.
Given the resilience of most financial services businesses, we expect continued M&A activity from the larger financial institutions.
While economic and geopolitical uncertainties have created headwinds, they're also generating opportunities for the Canadian mergers and acquisitions market. According to PwC Canada's M&A year in review and 2023 outlook, last year's activities continued to be in line with historical norms. However, this year, a reset in valuations, the availability of capital and increased competitiveness from corporates should help create openings for dealmakers.
PwCs 26th Annual Global CEO Survey illustrates that while 76% of Canadian corporate leaders are pessimistic about global economic growth, 54% aren't planning to delay deals in 2023 to mitigate potential economic challenges and volatility. The survey results further show that a significant number of both global CEOs (39%) and Canadian respondents (25%) believe that their company will no longer be economically viable a decade from now, if they continue on their current path.
Strategic M&A as the fastest way forward…
