There has been much in the way of business in 2016. including political and economic issues around the world. Yet still, 2016 proved to be among the strongest years on record for Canadian Mergers and Acquisitions. Why? Canada may be embracing the new and slowly pushing out the old. Heading into 2017, Canada could have another great year, pushed forward by continual flow of investment activity.
Based on what we have seen, Canadian companies have been pushing to diversify (beyond oil and gas operations) and anticipate opportunities in green energy, financial services and technology to supplement and expand their traditional energy industry operations.
Green Energy is the major push. Solar, Wind, Geothermal, Hydro, Batteries and more, are all within the conversation. Newly implemented Carbon taxes have made all of these mediums more viable. It is now possible to generate returns on technologies that were not possible prior from both residential and commercial standpoints. We feel that this push will not take long to show up in our day-to-day lives and within the job market.
Some key observations:
Oil prices are showing a upward trend into 2017, and if the trend continues you may see companies begin to show interest in using some of their parked cash. New projects will be planned and new technologies will likely be utilized to diversify and keep costs down.
More investment and diversification will lead to an increase in M&A activities.
Cross-border activity from the Asia-Pacific regions and beyond. With an uncertain political landscape in the world, Canada companies may look to increase trade with countries to both the west and the east.