BDO Canada supported $19 billion in transactions in 2022
BDO Canada advised on transactions worth a total of approximately $19 billion in 2022, the Toronto-based firm reported last month.
The mid-market accounting and consulting firm supported more than 180 transactions, with 70% involving private capital. BDO advised on 36 closed deals in a range of industries – with the majority in retail/consumer and manufacturing/distribution.
BDO’s deal advisory practice has offerings in capital advisory, deal analytics, IPO preparedness, mergers and acquisitions, and transaction services. The firm’s M&A services include strategy development and execution, due diligence, and sales preparation.
The transaction market cooled significantly in Q4 22 into Q1 23 amid high interest rates and growing economic uncertainty. BDO said there is still “strong demand” for M&A and capital advisory services, primarily from private capital transactions.
“We continue to see robust M&A activity in the markets we serve,” Michael Morrow, leader of M&A and capital markets at BDO Canada, said. “Succession planning issues continue to be the driving force fueling the need to transition businesses while corporate and financial buyers are well capitalized and seeking to grow by acquisition in a low-growth economy. While deal-making continues to work through headwinds, there continues to be a significant amount of dry powder ready to be deployed.”
The American Big Four accountancies – who tend to work with large corporate and private equity clients – have been cutting jobs this year, with a large proportion falling on transaction services due to a sharp decline in demand compared to the pandemic era. KPMG, for example, announced an initial 700 layoffs in its advisory business in February. The firm last month announced an additional 2,000 layoffs – with the cuts landing across all three of its business lines of audit, tax, and advisory.
“Many of our private capital clients, while cautious, are keen on deploying capital,” Sunil Sharma, leader of private equity and transaction services, said. “As the public markets continue to face challenges, we expect to see opportunities with take-privates. Further, we expect private equity funds to focus on tuck-in acquisitions as a means of value creation, utilizing deals to acquire talent, customers, or new products and services.”
