Canadian M&A Surge Expected as Nation-Building Plan Spurs Dealmaking
Event summary
- Approximately one-third (33%) of Canadian businesses plan a major acquisition within the next 18 months.
- Private equity-backed companies show a slightly higher acquisition intent, at 36%.
- The Canadian government's nation-building agenda allocates $115.2 billion over five years, aiming to stimulate over $1 trillion in private investment.
- KPMG Corporate Finance Inc. Canada ranked as the No. 1 M&A advisor in 2025, advising on over 280 deals.
The big picture
Canada's ambitious nation-building plan, coupled with a favorable economic outlook and accessible capital, is creating a fertile ground for M&A activity. This surge in dealmaking is particularly concentrated in the mid-market, driven by both strategic buyers seeking scale and private equity firms seeking opportunities in sectors benefiting from government investment. The emphasis on domestic deals suggests a broader trend towards self-sufficiency and resilience within the Canadian economy.
What we're watching
- Sector Focus
- The concentration of M&A activity in sectors like infrastructure, energy, and critical minerals will likely intensify competition and potentially inflate asset valuations, requiring disciplined dealmaking.
- Private Equity
- The continued presence of private equity funds and family offices with substantial dry powder suggests a sustained level of deal activity, but their ability to deploy capital effectively will depend on identifying undervalued or strategically compelling targets.
- Interest Rates
- While a steady interest rate environment is currently supportive, any significant shifts in monetary policy could rapidly alter financing conditions and impact deal feasibility, creating a bifurcated market.
Related topics