Despite flatlining global technology mergers and acquisitions volume year over year in 2012, Canadian volume was up 21%, according to Ernst & Young’s Global technology M&A update.

“Canada’s deal volume was very heavily weighted towards Q2 in 2012, during which time 84% of transaction volume for the year was recorded as the result of two mega-deals,” says Tony Ianni, Transaction Advisory Services partner at Ernst & Young. “But globally, companies were hesitant to engage in large, transformative deals in 2012.”

The report highlights that risks such as incorrect valuation were top of mind as equities markets fluctuated and buyers believed many company values remained high. But deal volume held steady as macroeconomic pressures forced companies to clarify what’s important.

The report shows there continues to be a broad-based need for transactions that help companies accelerate their adaptation to transformative technology.

“These technology megatrends are shaping and driving business in virtually every sector,” says Martin Lundie, partner and Canadian Media and Entertainment leader at Ernst & Young. “All businesses should really be taking a good look at where and how these trends are already affecting their business, and examine how they can make the most of these trends to grow.”

Also read:

5 M&A trends to watch for in 2013

2012 M&A deal volumes hit post-crisis high: PwC

Acquisition pricing poses challenge for Canadian firms

Originally published on Advisor.ca
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