42014429 - Horizons Q1 2022_v06

HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 11

NORTH AMERICA HEAT CHART BY SECTOR

TMT

502 21%

Financial Services 488 20% Pharma, Medical & Biotech 352 15% Business Services 303 13% Industrials & Chemicals 299 12% Consumer 179 7% Energy, Mining & Utilities 178 7% Leisure 66 3% Real Estate 39 2% TOTAL 2406

LOOKING AHEAD

The first half of 2022 does not show any imminent signs of slowing down, but the question remains whether the M&A market can continue for another full year at the same frenetic pace. With increasing inflation and a strengthening economy, the US Fed indicated that they are likely to begin raising interest rates earlier than anticipated, with three or four rate hikes expected in the year. The same is likely to happen in Canada and while this should not immediately curtail M&A activity, it will likely slow it down in the medium to long-term. Conversely, with strong market fundamentals, robust amounts of PE dry powder and strong strategic balance sheets, deal activity will not fall off a cliff. While the market remains hot in terms of deal dynamics, every sector is poised to remain strong in deal activity and capitalize on the current M&A environment.

RYAN FARKAS MANAGING DIRECTOR

rfarkas@bdo.ca

NORTH AMERICA MID-MARKET VOLUMES BY SECTOR

2020

2021

ALEX ARDIZZI DIRECTOR

aardizzi@bdo.ca

549 52

758 993

20

6 16

299 301

306 58

41

39 49

267 9

313 99

117

159 236

196 7

173 217

142

114 58

186

166 210

Technology & Media

Financial Services

Energy, Mining & Utilities

Pharma, Medical & Biotech Real Estate

Consumer

Business Services

Leisure

Industrials & Chemicals

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