The drought in risk capital that saw Canadian merger and acquisition (M&A) activity drop to just $13 billion last year from more than $55 billion in 2012 (the lowest level since 2008) has created some interesting deal dynamics, which are persisting into this year. With public markets only open for blue-chip companies or experienced high-profile management teams that people are willing to back, lesser companies that want to merge or raise money to develop a play or address debt issues may not be able to find that money, forcing asset sales or company sales. They also might have to field a few low-ball offers before attracting a thin group of buyers.
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