The Canadian FS M&A Newsletter provides a market update and summary of key trends from the insurance, asset & wealth management, and banking sectors.
There have been signs of life in the M&A market in the last few months as countries have started to gradually reopen their economies. Transactions that were put on hold at the beginning of the pandemic are now coming back to life and deals are getting done.
Global financial services deal activity increased in Q3 2020 to the highest levels of quarterly deal volume since Q4 2019. Though global deal volume declined by 2.5 percent compared to Q3 2019, deal value was up C$27 billion in Q3 2020 compared to the third quarter of 2019.
Canadian financial services deal activity in Q3 2020 increased by 91 percent compared to Q3 2019 with 42 transactions across the sector. Activity continued to be concentrated in the Insurance Distribution and Services sector, with the Asset & Wealth Management sector also exhibiting a number of transactions.
As the world economy continues to recover, we anticipate a return to deal-making. With low interest rates, both corporate and private equity buyers are expected to be active. In addition to low interest rates, private equity buyers are also expected to benefit from the ability to deploy records amounts dry powder committed prior to the pandemic.
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