Mergers and acquisitions will accelerate in 2025 as conditions calm down: KPMG

KPMG says nine in 10 Canadian CEOs are considering making an acquisition in the next three years to fuel their company’s growth.

Two surveys by the company released Monday show that four in 10 Canadian CEOs plan large deals and nearly three-quarters of small and medium-sized businesses are considering acquisitions.

KPMG says Canadian CEOs see mergers and acquisitions as the second most important growth strategy over the next three years, after organic growth.

Meanwhile, smaller companies are relying less on these deals as a key growth strategy, but many still plan to make acquisitions in the coming years, with four percent pursuing acquisitions.

John Cho, KPMG’s national leader in the Canadian transaction advisory practice, says recent rate cuts by Canadian and U.S. central banks, as well as lower inflation, will “breathe life” back into the M&A market.

With greater confidence, he says 2025 could be one of the busiest years for mergers and acquisitions in a long time.

This report by The Canadian Press was first published Oct. 7, 2024.

Canadian Press