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.
Issue link: https://digital.carswellmedia.com/i/1544329
www.lexpert.ca 7 "The figures reflect the continued strength of the Canadian M&A market" Jonathan See, MCCARTHY TÉTRAULT LLP Reflecting on the market's recovery in 2025 and the carryover into 2026, Jennifer Grossklaus, partner with Davies Ward Phillips & Vineberg LLP, says, "We expected 2025 to be busy, but tariff uncer- tainty and market volatility slowed activity early on. Businesses paused sale processes while awaiting clarity." However, by the third and fourth quarter, activity accelerated meaningfully, she says. Deal numbers ended roughly flat compared with prior years, though aggre- gate value rose due to several US mega deals skewing totals. Heading into 2026, Grossklaus is opti- mistic. "We come off a really strong second half of 2025, and momentum continues. Buyers and sellers are focused on long-term fundamentals, rather than reacting to daily volatility," she says. Mining, technology, and AI are expected to lead. Rising commodity prices, including gold and copper, and efforts to secure critical minerals support consolidation. Sustained investment in AI and digital infrastructure also drives tech deals, while federal infrastructure, energy, and defence commitments bolster industrial and manu- facturing activity. Valuation remains challenging in volatile markets. Grossklaus says earn- outs remain essential, particularly where future performance is uncertain. Contingent value rights, which recently saw increased use in US public deals, may migrate north. "The real value of experienced M&A counsel comes in being solution-oriented, helping solve problems rather than just identify- ing them. We facilitate transactions and achieve clients' objectives, even amid uncertainty." Canada's M&A market enters 2026 with momentum, yet complexity remains. And lawyers who practise in this area will continue to play a crit- ical role, guiding transactions beyond traditional documentation, reflecting the growing importance of sophisti- cated risk management, strategic deal structuring, and careful attention to policy developments. 2024–2025 CANADIAN DEAL ACTIVITY Deal value Deal count 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 Source: Bennett Jones / S&P Market Intelligence $43.28B $83.67B $78.07B $66.65B $93.05B $80.86B $130.96B $84.82B 844 884 810 870 800 784 827 773