07:32:36 EDT Tue 22 Oct 2024
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Globe says TSX can expect more M&A activity

2024-10-08 07:54 ET - In the News

The Globe and Mail reports in its Tuesday edition that KPMG says nine in 10 Canadian CEOs are considering making an acquisition within the next three years. A Canadian Press dispatch to The Globe says that a pair of surveys by the firm released Monday show four in 10 Canadian chief executive officers are planning major deals. Canadian CEOs see mergers and acquisitions as their second most important growth strategy in the next three years, behind organic growth and ahead of strategic alliances, according to KPMG. "Recent interest rate cuts by central banks in Canada and the U.S., and lower inflation are breathing life back into the M&A market," said KPMG's John Cho in a press release. "As the cost of capital eases, investors and corporates are becoming more confident about making acquisitions, so we expect to see deal making activity pick up; in fact, 2025 could be one of the busiest years for M&A in quite some time." Mr. Cho added that the supply of acquisition targets will likely also increase next year as economic headwinds ease and more private equity funds exit their investments after years of sitting tight. Sourcing private capital has become increasingly important to Canadian organizations in recent years.

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