DealLawyers.com Blog

January 12, 2011

M&A Trends: 11 for ’11

Below is a summary of Stikeman Elliott’s analysis of M&A Trends for this year, culled from this full report:

As the global financial storm subsides, Canada’s economy is commanding unaccustomed attention and some new-found respect. A solid regulatory system and strong demand for Canadian resources and commodities have kept the country in the business headlines for all the right reasons. In the M&A sector, there is every indication that the rebound experienced in 2010 will continue in 2011, as market players continue to adjust and adapt. We believe that each of the trends identified below will play a part in shaping the market – whether it’s creative methods of financing, more realistic valuation methods, adjustment to deal terms or regulatory developments in the areas of foreign investment, taxation and securities law.

M&A Trends 11 for ’11

1. Investment Canada: Business as usual for foreign investors in 2011
2. Canadian poison pills gain strength: Just saying no may be getting easier
3. The commodities sector: No end in sight to foreign demand
4. Financing and valuation:Techniques for bridging the gaps
5. Hedge funds, pension funds and other pools of capital
6. Growth of a domestic high-yield debt market: A positive result of low interest rates
7. Going with the (cash) flow in valuations
8. Income tax: Recent developments generally positive for M&A
9. Structuring investments in M&A transactions: Bilateral investment treaties
10. Infrastructure: One of the hottest M&A tickets for 2011
11. Deal terms in Canada and the U.S.: Similarities and differences