Kevin Morris provides insight in Financial Post on confidence as the most precious commodity for deal makers

Canada's biggest deal makers getting their swagger back

February 26, 2014

Partner Kevin Morris offers insight on this Financial Post article discussing confidence as the most precious commodity for deal makers. Below is an excerpt of the article.

2014 could be a quiet year in the business of mergers and finance. Investment banking activity is tied to economic growth. When chief executives are positive about the outlook, and their companies are growing, they push to make transactions happen. At the moment, there’s not much push.

There are signs of increased optimism about global economic growth, manifested in a long bull run in U.S. stocks. But there are still questions, chiefly around commodity prices and economic growth in markets such as China.

Those questions are especially crucial in a resource-driven market like Canada. In three of the last four years, more than half of the merger and acquisition activity involving Canadian companies has come from the resource sector – a business inextricably tied to growth and commodity prices. Below is an excerpt of the article.

“The Canadian dollar valuation is helping with the notion of foreigners coming in, but there is still the uncertainty of how they will be treated, and that does add a wrinkle,” said Kevin Morris, co-chair of the capital markets and corporate group at Torys LLP. He cited a client he spoke to last week about a deal in the telecom sector. “They were looking at it and decided not to do it.”

For the full article, click here.


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