2020 Dealmaking: Insights from Global and Canadian Experts

Market Insights - Q4 2019

New year, new decade. We’re entering 2020 with an air of cautious optimism for Canadian deal making. The Phase 1 China-US deal and the USMCA’s recent approval by the US Senate, have, somewhat, eased trade-related economic unpredictability. But with sustained geopolitical instability and a business cycle that is well into late innings, we’re entering the new decade with a dose of uncertainty.

So why do we, here at FirePower, feel cautiously optimistic about the dynamics of Canadian M&A? Our outlook, on the back of a slower, but still healthy, 2019 is premised on our ground-level experience, the record levels of capital in the hands of financial and strategic buyers, the low cost of debt, and a favourable perception of the country in buyers’ eyes. While high valuations and concern about an inevitable downturn are prompting buyers to take different approaches to their deal making, we don’t expect much change to the level of deal activity in 2020.

To test our thesis and gain a broader perspective, we interviewed Canadian, American and German experts that are active or interested in the Canadian market, including:

  • Kim Furlong, CEO, Canadian Venture Capital & Private Equity Association, Canada (Industry Group)
  • Craig Korte, Director of Business Development, Industrial Opportunity Partners, US (Private Equity)
  • Gregory Peter, Regional Director, Origination The Riverside Company, US (Private Equity)
  • Jan Pörschmann, Partner, Proventis Partners, Germany (Investment Banking)

Access the full Market Insight, including interviews, in the pdf  below.

Case Studies

Last Call Analytics
When FirePower first met Last Call Analytics, the company was building custom big data analytics and visualization software platforms for frontline sales staff, primarily of beverage & alcohol distributors, but also for clients in other industries.  Last Call needed capital to grow, as well as strategic guidance to develop a stronger revenue model and focused direction. FirePower invested both capital and hard work, shifting the revenue model, focusing its resources, and ultimately, helping the company achieve its potential.

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