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Coming off record levels of deal value and volumes in 2021, the first quarter of 2022 saw a notable drop in M&A activity as rising inflation, increasing interest rates, and the flaring of geopolitical conflict tempered investor sentiment.

The following is a selection of MNP Corporate Finance transactions completed across Canada in 2021.

The following is a selection of MNP Corporate Finance transactions completed across Canada in 2021.

$1.6 billion of total capital was raised in Q4 2021, an increase from the $1.1 billion raised in Q4 2020.

In Q4 2021, transaction volume and value in the North American manufacturing sector rose compared to the previous quarter. Total disclosed transaction value decreased 46% from $84.2 billion to $45.3 billion year-over-year (“YoY”), remaining below the quarterly 5-year average of $87.2 billion.

Healthcare merger and acquisition activity in the fourth quarter of 2021 exceeded $9.6 billion in disclosed transaction value across 636 deals in Canada and the US. The average deal size among disclosed transactions was $68.1 million, a decrease from $69.4 million in the third quarter of 2021.

Despite an overall increase in the number of transactions, Q4 2021 transaction values in the North American food and beverage industry decreased by 60% compared to the previous quarter.

Engineering and construction merger and acquisition (M&A) activity in Q4 2021 was approximately $1.3 billion in disclosed transaction value across 17 deals in Canada and the US. US transactions accounted for 15 of these deals, representing a decrease of 28.6% from the previous quarter.

Publicly disclosed M&A activity in the North American dealership industry has exploded in the latter half of 2021, reaching 106 disclosed transactions thus far, exceeding the 43 transactions disclosed in 2020. Due to the semiconductor shortage, fewer vehicles are being manufactured. Although profit margins may be increasing in the dealership space, revenues may be decreasing as a result of the lack of supply.