Corporate restructuring will help drive busy M&A environment in 2022

With 2021—a banner year for dealmaking—now in the rear view, the year ahead is poised to be just as busy with M&A activity.

Torys’ M&A lawyers are predicting a continuation of the high levels of activity seen last year, including an ongoing increased interest in spinoff transactions and divestitures in 2022 as a way for companies to return value to shareholders and refocus their strategic direction.

Speaking with the Globe and Mail on these and other dealmaking themes raised in the Torys Quarterly analysis “Canadian M&A outlook for 2022”, co-head of the firm’s M&A practice John Emanoilidis said a range of factors, including board and executive teams reviewing their operations, will drive further restructurings this year.

“One rationale for pursuing these transactions is to allow management to sharpen the business focus,” John said.

John said any company with distinct business units is a potential candidate for this type of transaction, adding that starting the process distinguishing high- and slow-growth businesses, “with the expectation that they will each benefit from more focused management and investor interest as a stand-alone company” is a familiar starting point for boards.

Read our complete year-ahead outlook for 2022 in the Torys Quarterly.

You can learn more about our approach to deal work and our experience in M&A on our Transactions page.

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