But U.S. monetary policies, Europe's debt crisis and food inflation
cause for concern: PwC
TORONTO, Dec. 10 /CNW/ - PwC's December Capital Markets Flash report
highlights 20 reasons why Canada is the place to be from a markets
perspective. Despite a backdrop of global macro weakness, Canada's
public debt capital has been plentiful and investor demand for equities
has been very healthy.
Kristian Knibutat, PwC's National Deals Leader, outlines in the report
that the three external risks most likely to disturb Canada's growth
trajectory through 2011 are 1) U.S. monetary policies related to
quantitative easing 2) Europe's sovereign debt crisis and 3) Food
inflation. Acknowledgement and appreciation of this interconnectedness,
and the necessity to govern our actions to neutralize these threats,
cannot be understated, states Knibutat.
For the positive, there's never been a better time to participate in
Canadian capital markets. Here are 20 statistics to back up that
475%: annual increase in number of corporate IPOs on the TSX in 2010.
119%: annual increase in equity capital raised year to date in 2010 by
TSX-V listed companies.
2,813: number announced M&A deals in 2010 involving a Canadian entity.
2,937: number of announced Canadian deals at all-time peak in 2007.
$67.1 billion: Aggregate year to date value of corporate debt new
issues; $64.4 billion: aggregate value in 2009; $38.5 billion:
aggregate value in 2000.
13%: appreciation of the TSX since December 9, 2009. 9%: appreciation of
the S&P 500 during the same period.
$76 billion: estimated size of assets under management by Canadian PE
and VC players.
28%: annual increase in venture capital dollars invested in Canada in
2010. 10.5%: three year net return on first quartile Canadian VC
investments; -2.7%: three year return on the NASDAQ.
27%: year to date appreciation in price of gold. 12%: year to date
appreciation in WTI crude.
48.6%: proportion of TSX (by market cap) represented by the energy and
mining sectors in 2010; 27%: proportion of TSX (by market cap)
represented by the energy and mining sectors in 2002.
$5 billion: Amount paid by Onex & Canada Pension Plan to acquire
British manufacturer Tomkins; #1 rank of deal on North American PE
league tables (by size).
$1.5 billion: high yield debt issued in Canada year to date 2010; 86:
number of high yield issuers in Canada; non-existent: Canadian high
yield market in 2000.
1st: global rank of TSX for number of mining and energy companies publicly
80%: percentage of global equity financings in the mining sector
completed in Canada.
72%: proportion of cross border activity involving a Canadian entity
taking control of a foreign entity.
$660 million: size of Smart Technologies IPO, the largest Canadian tech
IPO in a decade.
$1,156: Q3 2010 cash flow per share publicly traded Canadian companies;
$633: cash flow per share, comparable quarter, 2002.
$4.65 billion: amount paid by China's state-owned Sinopec to acquire a
9.03% interest in Syncrude Canada; #1: deal rank in league table of
acquisitions in North America by China (by size).
27,000: number of times "Saskatchewan" mentioned in the global media
year to date 2010. 2,750, number of times Saskatchewan mentioned in
$1,156: Q3 2010 cash flow per share publicly traded Canadian
companies, $633: cash flow per share, comparable quarter, 2002.
2x: EBITDA multiple expansion for North American middle market M&A deals
($100 - $500 million).
PwC deal data includes announced M&A transactions involving at least one
Canadian entity and the source of all our data is Capital IQ. The full
report including graphs and detailed analysis is available from the
contacts above and at: www.pwc.com/ca/cmf. Go to this url to subscribe to the bi-weekly capital market series: www.pwc.com/ca/cmf.
In this report, a "Canadian" deal refers to an M&A or spinoff
transaction involving at least a Canadian entity as a target.
Deal statistics may include cancelled transactions.
TSX issuance data current to November 30, 2010.
M&A data current to November 30, 2010; Balance Sheet and Income
statement data of public companies per Q3 2010 or as otherwise noted;
Venture Capital Data as at September 30th 2010. All other year to date data and trending as at December 3, 2010.
In the case of hostile or competing bids, more than one announcement for
the same target may be included in statistics. Our methodology
includes these announcements as we consider them to be a proxy for the
state of the M&A market.
About PwC's Deal Team
PwC's Deal Team (www.pwc.com/ca/deals) helps clients to achieve deal success—from concept to close and
beyond. As part of the world's largest Transaction Advisory practice1, and with our global Corporate Finance group being 2010 Upper Mid
Market M&A Advisor of the Year2, the PwC Canada Deals Team is your gateway to an exciting new world of
emerging M&A opportunities.
PwC firms provide industry-focused assurance, tax and advisory services
to enhance value for their clients. More than 161,000 people in 154
countries in firms across the PwC network share their thinking,
experience and solutions to develop fresh perspectives and practical
advice. See www.pwc.com for more information. In Canada,
PricewaterhouseCoopers LLP (www.pwc.com/ca) and its related entities have more than 5,300 partners and staff in
offices across the country.
"PwC" is the brand under which member firms of PricewaterhouseCoopers
International Limited (PwCIL) operate and provide services. Together,
these firms form the PwC network. Each firm in the network is a
separate legal entity and does not act as agent of PwCIL or any other
member firm. PwCIL does not provide any services to clients. PwCIL is
not responsible or liable for the acts or omissions of any of its
member firms nor can it control the exercise of their professional
judgment or bind them in any way.
1 Source: Kennedy;"Business Advisory Services Marketplace 2009-2011" ©BNA
Subsidiaries, LLC. Reproduced under license.
2 Source: Acquisitions Monthly Awards 2010
For further information: For further information:
David Rowney, PwC
Tel: 416 365 8858
Kiran Chauhan, PwC
Tel: 416 947 8983