In 2021, Canadian M&A activity surpassed pre-pandemic levels in both transaction count and total implied enterprise value (EV). There were 2,117 Canadian companies sold in 2021, a historical record high. The total disclosed EVs of the 2,117 transactions were $117.7 billion, a 91% increase in comparison to the previous year. Of the transactions completed, 73% were domestic acquisitions, which is in line with historical averages.
Low interest rates, accelerated transaction timelines and abundance of capital in the market have been key factors in the 24% YoY increase in completed deals. Additionally, the median deal value sharply increased from $4.1 million in 2020 to $8.3 million in 2021 as deals under $50 million represented 77% of the deal count. Although megadeals represent only 5% of all transactions, they represented 75% of the total deal value.
Read our latest report for insights and trends in valuation multiples, cross-border transactions and M&A deal activity.