1. Trade and Innovation: Cross-Border M&A
June 2018
Dr. Howard E. Johnson
DBA, FCPA, FCA, FCMA, FCBV, CPA, CFA, ASA, CF, C.DIR
Managing Director, Duff & Phelps Canada Limited

2. Disclaimer
This material is for educational purposes only. It deals with technical matters which have broad application and may not be applicable to a particular set of circumstances and facts. As well, the course material and references contained therein reflect laws and practices which are subject to change. For these reasons, the course material should not be relied upon as a substitute for specialized advice in connection with any particular matter.
Although the course material has been carefully prepared, neither Duff & Phelps nor the author accepts any legal responsibility for its contents or for any consequences arising from its use.
© Howard E. Johnson, 2018

3. North American M&A Activity
Source: Capital IQ

4. Canadian M&A Activity
Source: Capital IQ

5. Canadian M&A Activity
Source: Capital IQ

6. Cross-Border M&A in Canada
Source: Capital IQ

7. Cross-Border M&A in Canada
Canadian Cross-Border Transactions by Region
(Number of Transactions – 2017)
Canadian Buyers
Canadian Sellers
United States
Europe
Asia/Pacific
Other
Source: Capital IQ

8. Cross-Border M&A in Canada
Canadian Cross-Border Transactions by Industry
(Number of Transactions – 2017)
Canadian Buyers
Canadian Sellers
Materials
Real Estate
Information Technology
Industrials
Consumer Discretionary
Consumer Staples
Energy
Healthcare
Utilities
Financials
Telecommunication Services
Not Specified
Source: Capital IQ

9. Cross-Border IT M&A
Source: Capital IQ

10. Summary Observations
Still an active M&A market, driven by significant cash reserves among PE firms and corporate buyers
Canadian firms are net buyers of foreign companies – regardless of the FX rate
Acquisitions can be a substitute of in-house innovation, but Canadian firms are net sellers of IT

11. We rank - #1 in global announced fairness opinions in the past 3 years
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