Mergers and Acquisitions Expected to Increase in 2025 as Market Conditions Improve: KPMG

October 8, 2024 TruthUSA

KPMG reports that 9 out of 10 Canadian CEOs are contemplating acquiring another company in the next three years to facilitate their company’s growth.

According to surveys by the firm released on Monday, 4 out of 10 Canadian CEOs are planning significant deals, while nearly 75% of small and medium-sized businesses are exploring acquisitions.

KPMG highlights that Canadian chief executives view mergers and acquisitions as the second most crucial growth strategy in the next three years, following organic growth.

On the other hand, smaller businesses are not as reliant on these deals as a primary growth strategy, but many are still preparing to make acquisitions in the near future, with 4% actively seeking to be acquired.

John Cho, the national leader for KPMG in Canada’s deal advisory practice, observes that recent interest rate reductions by Canadian and U.S. central banks, coupled with lower inflation, are reinvigorating the merger and acquisition market.

With a boost in confidence, 2025 could potentially become one of the most active years in a while for mergers and acquisitions.