What's Happening?
KPMG has emerged as a leading consultancy in the Canadian mergers and acquisitions (M&A) landscape, advising on 65 deals in 2025. This positions KPMG ahead of its Big Four counterparts, Deloitte and PwC, which closed 56 and 35 deals respectively. The firm's president of Corporate Finance, Marco Tomassetti, attributes this activity to the Canadian government's nation-building agenda, which is expected to drive further M&A activity in 2026. The agenda includes significant investments in infrastructure, energy, and critical minerals, creating a conducive environment for larger companies to undertake complex projects. This dynamic is making smaller, specialized firms attractive acquisition targets, while larger players are scaling up to meet project demands.
Why It's Important?
The increase in M&A activity in Canada is significant as it reflects a strategic shift towards self-sufficiency and competitiveness in the face of global economic challenges. The Canadian government's focus on infrastructure and energy investments is expected to stimulate economic growth and create opportunities for businesses to expand their capabilities. This environment is likely to attract both strategic and financial buyers, including private equity firms, looking to capitalize on the stable interest rate environment and improved investor confidence. The anticipated consolidation in sectors such as construction, engineering, and advanced manufacturing could lead to increased efficiency and innovation, benefiting the Canadian economy as a whole.
What's Next?
As the Canadian government continues to implement its nation-building agenda, the M&A landscape is expected to remain active. Companies in sectors like construction, logistics, and advanced manufacturing are likely to pursue acquisitions to enhance their capabilities and meet growing demand. The steady interest rate environment will support financing for these deals, while the ongoing retirement of the boomer cohort may lead to more succession-related divestments. Stakeholders, including policymakers and business leaders, will need to navigate this evolving landscape to maximize the benefits of increased M&A activity.
