Over the last several years, Canada’s mergers and acquisitions (M&A) landscape has experienced significant disruption and uncertainty, yet it has also demonstrated resiliency and adaptability in the face of ongoing changes. These changes, ranging from supply chain disruptions, evolving stakeholder and regulatory expectations, heightened economic and geopolitical uncertainty to the rise of Generative AI technologies, were inevitable. Now more than ever, businesses face increased pressure to deliver improved, sustainable and lasting results for stakeholders.
As we look ahead, technological advancements and a continued focus on environmental, social and governance (ESG) will continue to drive change in the business community. To adapt and thrive in this environment leaders are pursuing M&A activities that harness innovation and secure a competitive edge.
In order to take proactive steps in navigating the complexity of the M&A landscape, organizations should:
- Develop a clear and comprehensive M&A strategy aligned with overall business objectives. This includes identifying potential targets, defining desired outcomes, and understanding how these actions will contribute to your organization’s strategic goals.
- Conduct a comprehensive review including financials, operations, culture and regulatory compliance to identify potential risks or challenges.
- Engage legal counsel early in the process to identify and address potential legal risks and issues related to the merger or acquisition. This includes understanding possible legal implications, ensuring compliance with all relevant laws and regulations, and negotiating and drafting required legal documents.
- Assess ESG performance and understand how a merger or acquisition could impact your organization’s ESG commitments and goals.
- Understand how the integration of technology systems will be managed during the M&A process, and plan for any necessary upgrades or changes.
- Develop a robust change management plan to help ensure a smooth transition before, during and after the M&A process.
