Canada M&A units file for quarter on cross-border offers, simple cash

By Maiya Keidan

TORONTO, April 7 (Reuters). Canadian M&A activity in the first three months of the year catapulted to all-time highs as dealmaking recovered from the effects of the coronavirus and bankers point to a healthy pipeline of transactions based on easy funding terms.

The novel coronavirus drove mergers and acquisitions (M&A) to a nine-year low in 2020 when companies switched to cash-on-hold. However, the introduction of vaccines and an expected economic recovery are boosting business confidence to close deals, particularly in the US.

“These are definitely the busiest times I’ve seen in my 25-year career,” said Grant McGlaughlin, partner at Fasken law firm. “I don’t think you can hold out at this pace all year, but hopefully Q2 and Q3.”

The quarterly M&A balance sheet hit an all-time high of $ 114.91 billion in the first quarter of 2021, according to Refinitiv. Companies raised $ 19 billion ($ 15.2 billion) through stock sales in the first three months of the year, the highest since the fourth quarter of 2010.

Mike Boyd, managing director and head of global mergers and acquisitions at CIBC, said he doesn’t think he has ever seen capital markets as conducive to mergers and acquisitions as it is now.

“If you look at the debt markets in particular, you have a record low in interest rates and we also have … strength in market capacity” to absorb the size of the deal, he said.

Boyd expects M&A activity to remain high thanks to low interest rates and a strong economic recovery that will continue for at least the next few quarters.

OUTBOUND RUSH

Bank of America Corp.’s BofA Securities Inc, Bank of Montreal’s BMO Capital Markets, and Toronto Dominion Bank’s TD Securities Inc formed the top three banks for mergers and acquisitions.

Canadian Pacific Railway Ltd’s $ 25 billion offer for Kansas City Southern and Rogers Communications Inc’s C 20 billion deal for Shaw Communications Inc topped the list of deals.

The story goes on

Bill Quinn, head of M&A at Toronto Dominion, said while Canadian investors looking outside Canada had declined over the past year due to the pandemic, we are now seeing a “return to normal”.

Outbound deals worth nearly $ 50 billion were made in the first quarter of 2021. This was the second largest quarter on record, with about half coming from the CP transaction.

“In terms of Canadian M&A, we are seeing stronger growth in our market compared to the US,” said Sarfraz Visram, Head of M&A at BMO Capital Markets.

U.S. M&A activity increased 12.2% to $ 869.35 billion in the first quarter of 2021 compared to the fourth quarter of 2020, while Canadian M&A activity grew sequentially at 44.4 during the same period % recorded as refinitive data showed.

“We have now clearly gone around the corner,” said Emmanuel Pressman, partner at the law firm Osler. “It’s partly a renewal of confidence in cross-border M&A flows, both inbound and outbound.”

($ 1 = 1.2536 Canadian dollars) (Reporting by Maiya Keidan Editing by Denny Thomas and Lisa Shumaker)

5 Simple Methods to Sneak Extra Cash Into Your Emergency Fund

In need of a healthier emergency fund? How to build one with no stress.

We all need money rolled into one saving account for a rainy day. You never know when you will lose your job, get stuck at a home repair, or walk to your driveway and find your car won’t start.

Without a Emergency fundYou could get into serious debt and ruin your finances for years. A better bet is to stash the cost of living in the bank for three to six months for the unexpected. And here are a few simple ways to increase your cash reserves – without taking too much of yourself.

1. Maximize your forced pandemic savings

Many people changed their lifestyle during the pandemic. Maybe you’re not commuting to work right now, or you’ve replaced movie and restaurant trips with quiet nights at home to be on the safe side. All of these forced savings could be an excellent opportunity to replenish your emergency fund. Of course, once the pandemic ends, you’ll need or want to spend those expenses again – and that’s fine. The key is to take advantage of forced savings while this is the situation you are dealing with.

2. Reduce an expense that can be replaced with a cheaper alternative

If you cancel your cell phone plan, you may not be able to communicate with others. However, if you cancel your gym membership, you can still exercise. Look at yours budget and see if there is an edition that you can replace with a free or inexpensive alternative. For example, you might be able to cancel a cable plan that costs $ 80 per month and sign up for $ 15 monthly streaming service instead. Returning to this cellphone example, you probably can’t do without a phone entirely, but you may be able to sign up for a cheaper plan.

3. Use your stimulus check

The legislature is working on sending a third one Stimulus test to the public. If this succeeds, there is an easy way to increase your savings – provided you don’t need money for basic necessities such as groceries and medicines.

4. Don’t spend your tax refund

Most people who file a tax return receive a refund. Usually getting money back from the IRS is an easy way to increase your savings without limiting anything else.

5. Save your raise

Did you get a raise this year? If so, you may have spent the extra cash on treats or entertainment. Well, it’s time to quit this practice if your emergency fund needs work. The good news is that at this point you are probably not used to this increase, which means you should be able to live without spending it. Do not incur any additional costs in the short term. Instead, turn that paycheck into savings until you are more satisfied with the amount of rainy daily money you have.

Emergency savings are essential. Without that money, you could really find yourself in a world of debt if life brings you unpleasant surprises. The good news is that funding your emergency savings may not be as difficult as you would expect. And once you’ve managed to reach a level of savings that you’re happy with, the security you enjoy is well worth every sacrifice you’ve dealt with along the way.