Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.
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2 www.lexpert.ca Editorial fortuna favet fortibus ISSUE 25.01 > APRIL MANAGING EDITOR Tim Wilbur EDITOR Aidan Macnab PRODUCTION PROCESS LEAD Alina Leigh PRODUCTION EDITORS Wen-Ching Shang, Christina Jelinek WRITERS Zena Olijnyk, Bernise Carolino, Angelica Dino, Kiezzsa Cruz, Emily Douglas DESIGNERS Khaye Cortez, Loiza Razon PRESIDENT Tim Duce BUSINESS DEVELOPMENT DIRECTOR Lynda Fenton DIGITAL DEVELOPMENT DIRECTOR Kevin Shields SENIOR BUSINESS DEVELOPMENT MANAGER Steffanie Munroe BUSINESS DEVELOPMENT MANAGER Jacquie Rankin ACCOUNT EXECUTIVE Matthew Oriel Lexpert Special Edition Magazine is published six times a year. KEY MEDIA and the KEY MEDIA logo are used under licence by KM Business Information Canada Ltd. LEXPERT is a trademark of KM Business Information Canada Ltd. KM Business Information Canada Ltd 317 Adelaide Street West, Suite 910 Toronto, ON M5V 1P9 Tel: (416) 609-8000 Fax: (416) 609-5840 Website: www.lexpert.ca All rights reserved. Contents may not be reprinted without written permission. Lexpert® Magazine is printed in Canada. PUBLICATION MAIL REGISTRATION NO. 41261516. ISSN1488-6553 Copyright© KM Business Information Canada Ltd All rights reserved. GST/HST#: 79989 8465 RC-0001 EDITORIAL INQUIRIES tim.wilbur@keymedia.com SUBSCRIPTIONS/ADDRESS CHANGES Contact: Donnabel Reyes at (647) 374-4536 ext. 243 or email donnabel.reyes@keymedia.com. To change your subscription address, please send your new address along with a copy of your mailing label(s) to the Subscription Dept., at the address indicated above. For all other circulation inquiries, please email Donnabel Reyes. 2 023 was a challenging year for Canadian mergers and acquisitions. Market uncertainty caused by interest rate increases and geopolitical risk caused concerns over valuations and financing, says Angela Blake at Bennett Jones LLP (p. 4). Many of those factors are still in play today. In the tech sector, dealmaking was negatively impacted by the collapse of Silicon Valley Bank in March 2023, further increasing what was already a lag in M&A, says Brigitte LeBlanc-Lapointe at Norton Rose Fulbright Canada LLP (p. 6). Yet there were bright spots, including utilities, energy, and mining, especially critical minerals and clean energy. Stability and expected interest rate reduc- tions will allow businesses to make longer-term plans for M&A and growth. "I think there are a lot of people waiting for rate cuts to happen because once those costs come down, lending costs come down, and that can have a cascading effect," says Aaron Atkinson at Davies Ward Phillips & Vineberg LLP (p. 8). Artificial intelligence's explosion also means buyers in various sectors are starting to leverage it in their internal processes to source targets, says LeBlanc-Lapointe. Yet the path ahead is not devoid of obstacles. An increasing regulatory asser- tiveness, particularly in competition and foreign investment, introduces layers of complexity and unpredictability into deal-making. e Investment Canada Act amendments and the Competition Bureau's enhanced powers signify a more interventionist stance, requiring businesses to navigate a labyrinth of regulatory scrutiny. "In the West, competition regulators are getting more assertive," says Michael Amm, co-head of the M&A practice at Torys LLP (p. 11). "ey are challenging more deals, and they're getting more powers to do so, generally – whether that is in the US, the EU, or Canada." Simultaneously, the emergence of an anti-ESG movement, primarily in the US, foreshadows potential ideological conflicts for Canadian corpora- tions striving to align with evolving environmental and social governance standards. is tug of war between progressing toward net-zero targets and contending with opposing viewpoints underscores the multifaceted chal- lenges businesses face. While things are looking up for M&A and finance, mitigating these risks will be vital to business success. e strategic advisors in this edition will help position you for success today and best address tomorrow's challenges. Tim Wilbur, managing editor Canadian M&A: Market optimism, regulatory risk