CBV’s Forecast a Rise in Canadian Deal Activity
The most recent CBV Insights report indicates a potential rise in Canadian deal activity throughout 2024 and potentially throughout 2025 as well. Thanks to their most recent survey (CBV Institute M&A Outlook Survey), 58% of Chartered Business Valuators practicing in Mergers & Acquisitions expect to exceed 2023 deal activity.
Leading Industries
There are three leading industries that CBV’s expect to see a greater rise in Canadian deal activity in the following sectors:
Industrial Products and Services
Health Care
Technology
CBV’s are also expecting an increase in insolvency transactions as well as improvement for deals that involve more mature companies.
Valuation Multiples Stay Stagnant
While there is lots of talk about a projected rise in deal activity, most CBV’s surveyed do not expect an increase in valuation multiples or the average deal size for transactions involving Canadian companies. In fact, only 22% of survey participants project increased valuation multiples over the next few years while 34% of participants expect an increase in the average deal size.
The Succession Backlog
The CBV Institute reports how there has been a significant backlog of businesses looking at succession planning due to the age(s) of owners. Not only is there a rise in older business owners looking to sell, many younger business owners are also eager to exit. CBV's are seeing a lot of business owners who want to quickly grow their business and position it for sale at a much younger age.
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Malahat Valuation Group specializes in business valuation and real estate appraisals to owners of privately owned companies and their professional advisors.
When owners need to leverage, sell or reorganize their assets, we answer the age-old question, "What is it worth?".
We provide our clients and their advisors peace of mind by preparing professional valuations that stand up to scrutiny from lenders, the Courts, and the Canada Revenue Agency.
Malahat Valuation Group Inc.
(250) 929-2929
