Briefly: “Business owners open to M&A” and more news

Private companies in Canada are more open to mergers or acquisitions than ever before.

According to a PricewaterhouseCoopers Canada’s ‘Business Insights’ survey, 34% of the respondents stated that mergers and acquisitions are an integral part of their growth strategy. That’s an increase of 28% from 2009.

These companies are also gearing up to be more competitive, with 53% planning on targeting their competitors and their market share and 61% will not be seeking additional financing to support their growth initiatives.

“An M&A strategy is particularly key for mature companies, whose organic growth is typically at a much lower rate than start-ups and younger companies,” said Brooke Valentine, managing director, corporate finance, PwC. “Mature companies tend to experience growth that resembles the overall growth that the economy is experiencing. By acquiring a business, they can substantially increase that level of growth because they can quickly achieve much higher levels of sales and profitability,” he says.

The sixth annual survey examines the crucial issues for Canadian private companies. Over 200 leaders of private companies from across Canada completed this year’s survey.

For full survey results and more information go to www.pwc.com/ca/businessinsights.

– John Powell

(10/25/10)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.