4 www.lexpert.ca
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Says Blake: "e higher interest rates
increased borrowing costs and made it more
difficult for buyers to find financing, espe-
cially if you had to borrow from more than
one lender."
Still, even in that uncertain climate, she
points to bright spots in sectors such as util-
ities, energ y, and mining, especially critical
minerals and clean energ y.
Blake gives several reasons for opti-
mism, including the stabilization of
interest rates and inflation numbers, so
dealmakers are more comfortable about
the environment in which they are
working ; more growth in private cred-
it-backed transactions; ongoing interest
in renewables, energ y, and resources; and
the potential increase in restructuring
and distressed M&A opportunities in a
post-COVID world.
"Even the fact that people are pretty
comfortable in thinking that rates won't
go higher – and will likely come down –
MERGERS AND
ACQUISITIONS IN 2024:
MORE OF THE SAME –
BUT MAYBE THIS TIME
DIFFERENT?
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DESPITE A SLOW 2023, DEALMAKER LAWYERS HOPE THE
PROSPECT OF LOWER INFLATION AND INTEREST RATES
WILL BE ENOUGH TO COUNTER THE UNCERTAINTY OF
TIMING, WRITES ZENA OLIJNYK
AS WE settle into 2024, the question on
the minds of M&A lawyers in Canada is
whether there is reason for optimism on
dealmaking this year. Aer all, Canadian
mergers and acquisitions lagged in 2023
compared to the
previous two years,
primarily fuelled by
the impact of higher
interest rates and the
uncertainty around
when they might fall.
e volatility from
that uncertainty led
to concerns over valu-
ations and financing,
says Angela Blake,
Toronto-based partner at Bennett Jones
LLP. is, coupled with "macro headwinds"
such as a tense geopolitical climate and
inflation, helped create a substantial down-
turn in overall M&A activity in 2023. And
many of those factors are still in play today.
"WE HAVE A LOT OF PEOPLE
THAT HAVE BEEN SITTING ON THE
SIDELINES FOR A LONG TIME… I THINK
2024 WILL BE AN IMPROVEMENT
OVER LAST YEAR"
ANGELA BLAKE
BENNETT JONES LLP
