September 18, 2015
Co-head of Torys’ M&A Practice Cornell Wright has been featured in a special report released by MergerMarket and Firmex. The report, Mid-Market: The Crux of North American M&A, presents a panel interview with leading experts exploring key topics in the current state of the mid-market space. Cornell, a highly-experienced corporate lawyer, weighs in on key market drivers and opportunities. Below is an excerpt of his comments.
Mergermarket: What has been driving mid-market M&A in 2015?
Cornell Wright: There are really five factors. The first one – and least intuitive one – is the aging population. The baby boomer generation is nearing retirement, and they are looking to monetize their assets by selling their businesses. Secondly, the availability of cheap credit is favorable for borrowing and conducting leveraged transactions. Thirdly, private equity funds continue to be flush with cash, and pressure from investors to use that cash will continue to drive their activity. Fourthly, there continues to be strong public company valuations, giving strategic buyers more purchasing power and confidence. And finally, the market is generally quite robust. On an organic-growth level, GDP is relatively limited. For companies looking to grow, inorganic growth through M&A seems to be the way.
To read a PDF of the full article, click here.