Global forces shaping Canadian M&A outcomes

As this year’s Global M&A Outlook highlights, deal activity is regaining momentum, but in a structurally more complex environment, where portfolio reshaping, technological disruption and execution discipline are redefining how value is created. Through our work with clients and ongoing dialogue with market participants, we have seen strong interest in how these global trends translate into the Canadian market. In response, we offer a Canadian perspective, grounded in the realities of a highly cross-border environment and focused on how these themes are shaping outcomes for Canadian dealmakers.

In Canada, these same forces are shaping the market within a context that is inherently cross-border. Recent transaction data suggests that nearly half of Canadian targets are acquired by international buyers, while Canadian organizations complete more than two-thirds of their transactions outside the country, a pattern that has continued into 2026.¹ As a result, Canadian M&A outcomes are increasingly influenced by global, and particularly US, deal dynamics, from pricing and capital availability to execution expectations.

At the same time, Canadian dealmakers are approaching the market with greater selectivity. Valuation uncertainty, elevated financing costs and a sharper focus on execution readiness are reinforcing a disciplined approach to capital deployment. Persistent gaps between buyer and seller expectations, combined with cost-of-capital pressures, are driving a continued focus on smaller, more executable transactions, where value creation is clear and near-term.

Canadian M&A doesn’t operate in isolation. With cross-border activity, particularly with the US, shaping pricing and capital flows, understanding global market dynamics is critical to executing transactions in Canada.

Marco Tomassetti

Managing Director, KPMG Corporate Finance Inc. and Partner, Deal Advisory

KPMG Canada

Portfolio simplification is firmly on the agenda but advancing more deliberately.

Canadian organizations are actively reassessing portfolio composition, particularly in asset-intensive sectors such as energy, infrastructure and industrials. Carve-outs and divestitures are increasingly being used to unlock capital and sharpen strategic focus, though often sequenced alongside integration priorities and broader transformation efforts. In cross-border contexts, these transactions are also becoming more structurally complex, requiring thoughtful structuring, regulatory navigation and separation planning.
Execution capability is emerging as both a constraint and a differentiator.

As the global report underscores, execution discipline is becoming central to M&A outcomes, and this is particularly evident in Canada. Many organizations are prioritizing the integration of prior transactions and operational stability over incremental deal volume. In more complex transactions, including carve-outs and cross-border deals, Day-1 readiness, separation planning and governance discipline are critical to preserving and realizing value.
The Canadian market remains two-speed, though less polarized than globally.

Private equity continues to be comparatively active, supported by capital deployment pressures, while corporates balance M&A against transformation priorities and execution capacity.2 Increasingly, competition for assets is shaped not only by access to capital, but by the ability to execute complex transactions effectively.
AI is beginning to reshape both how deals are executed and how assets are evaluated.

While global dealmakers are rapidly embedding AI across the transaction lifecycle, adoption in Canada remains uneven, with many organizations still in earlier stages of deployment. Over time, the gap between early adopters and the broader market is likely to become a meaningful source of differentiation, particularly in competitive, data-intensive and cross-border processes.

Canada’s structural advantages remain compelling, with continued global interest in areas such as natural resources, energy transition, infrastructure and high-quality mid-market platforms. Realizing this opportunity, however, will depend less on deal volume and more on the ability to navigate cross-border complexity, align on valuation and execute with discipline.

In this environment, success will be defined not by how much gets done, but by how effectively organizations translate strategic intent into well-executed, value-accretive outcomes.

Marco Tomassetti

Managing Director, KPMG Corporate Finance Inc. & Partner, Deal Advisory

Vancouver

KPMG Canada

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2026 KPMG Global M&A Outlook

2026 Global M&A Outlook

Download the full 2026 Global M&A Outlook to explore the data and analysis in depth.

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How KPMG can help

KPMG supports Canadian organizations as they navigate complex, execution-driven transactions. Our integrated Deal Advisory team brings cross-functional capabilities across the transaction lifecycle, from strategy through execution, helping clients manage complexity, assess options and deliver value. Drawing on deep sector experience and a global network of professionals, we support informed, practical decision-making in a market where execution discipline is critical.