Samantha Horn sheds light on the private equity field in Lexpert article

October 15, 2018

In Lexpert’s September/October cover story, Samantha Horn, partner in our Mergers & Acquisitions and Private Equity Groups, shares her insights on the popularity of the Canadian private equity market. Samantha explains to Lexpert that there is an increase of private equity funds being raised and that “there are a lot of transactions in Canada. The M&A market is very busy and robust. The last time I looked at it we tend to do more transactions than any other firm [but many] are mid-market, which my practice is focused on.”

Samantha has also observed an increase of US interest in private equity deals in the Canadian market, saying it has become “bigger and bigger over the years”. She speculates that one reason for this may be that “private equity tends to like doing deals in what I would call their own backyard,” and she has also had some US buyers indicate that “the market in Canada tends to be less competitive than the US marketplace. The ideal transaction for any PE player is to find a deal that isn’t a competitive auction for probably obvious reasons: better price and negotiations. When you have a competitive process, you’re probably going to pay more and perhaps not get all the terms you’d like”.

Due to the increasing number of private equity transactions, Samantha theorizes that the reason why so many founders are selling now is, “we hear a lot about the fact that there are these entrepreneurs selling out of, I can’t remember how many trillions of dollars of value, that we expect to change hands in the next, say, 10 or 15 years, as the baby boomers, many of whom are business owners, decide it’s time to do their succession planning”.

For more information, read Paul McLaughlin’s full Lexpert article “Shedding Light on the PE field: Studies into ‘hot market’ outline deals” here.