Jeffrey Singer discusses the year ahead in Canadian M&A activity on BNN Bloomberg

January 20, 2020

Toronto Managing Partner Jeffrey Singer told Bloomberg Markets that the Canadian M&A market is positioned for larger and more frequent deals in 2020, backed by an increase in capital flowing into private equity.

Speaking live on Bloomberg Markets with host Amanda Lang, Jeff described the past couple years in M&A as robust and notes that “Stikeman Elliott’s deal flow would suggest that is going to continue.”

Jeff anticipates, similarly to the years before, many blockbuster deals and continued high spending by private capital in Canada. “Private equity competes for relatively few assets. It is and continues to be a sellers’ market for that reason,” he said. He also notes that there are many buyers for fantastic companies, including public markets, as they look to increase liquidity and grow.

Amanda Lang touched on sectors that may be spotlighted in 2020 and mentioned the excitement towards investing in cannabis leading up to and after Canada’s legalization in October 2019.

“The headlines around cannabis now have to do with the reality having set in,” said Jeff. He concurred that the sector garnered much excitement, with some [companies] still poised for success, but pointed out that others will see more challenges in the coming years. “Even when it was exciting, private capital didn’t seem to run to cannabis,” he said.

“Ultimately, the private equity market looks for opportunity to put large sums money to work and leverage up [largely tapping into debt markets for the latter],” said Jeff.

To watch the full interview, click here.