00:00So, Melissa Shin was just telling us about the sentiment and how it's pretty positive right now.
00:05Renee, let me start with you.
00:06What do you think of the impact Carney Summit will be on Canadian deal-making overall?
00:12Will it spark the animal spirits that Larry Fink of BlackRock mentioned yesterday?
00:18Thank you, Scarlett.
00:19And certainly, you know, I think deal-making activity in Canada is already quite active.
00:24And I think that this is certainly a boost in becoming even more active.
00:31And, Jeff, of the changes and the announcements that were made yesterday, Melissa talked about expanding tax breaks for businesses,
00:38opening up the airports for investment.
00:40Which of those moves the needle the most for the deal-maker community?
00:45Thanks for having me, Scarlett.
00:47I think it's a confluence of all these events that are going to help move the needle.
00:52We'll have to see.
00:53But the tax changes that we've seen are quite significant.
00:58And we think they're going to be helpful in deal-making to come.
01:03Now, in terms of compelling investment opportunities in Canada, Renee, when you speak with clients, when you look at the
01:10kinds of conversations you're having this month versus, say, six months ago,
01:14which sectors or specific types of transactions look the most attractive?
01:18I imagine natural resources is way up there, given that that is Canada's strength.
01:23That's exactly right.
01:25And I think it's similar to the conversation we were having previously with Melissa.
01:29Resources are really on the top of the list in Canada right now.
01:34And, Jeff, tell us what you hear, what your conversations are like when it comes to resources, specifically.
01:40Yeah, we're definitely having those discussions.
01:43We're seeing sophisticated investors from all over the world and in Canada looking at resources, whether it be in the
01:50oil patch or mining elsewhere.
01:52And, Jeff, compare and contrast the level of interest from those institutional investors, private equity firms like, you know, the
02:01Carlisles, the Blackstones versus strategic buyers.
02:05I think we're seeing interest from both.
02:08There is a lot of dry powder out there, but capital, you know, is competitive.
02:13But we are seeing we are seeing large strategics with renewed interest in Canada.
02:18So we're seeing it from both ends.
02:20And, of course, the context here for what Mark Carney is trying to do, boost Canada's alliance with Asia, with
02:28Europe, while reducing its reliance on the U.S.
02:30Renee, I'm wondering whether that naturally leads to more private investment from those regions, from investors in those regions as
02:37well.
02:37Or is that a separate thing?
02:39I think those messages have been very well telegraphed.
02:43And I think that it's clear to the international community that Canada is open for investments and is very interested
02:51in building those relationships in markets where we have historically been maybe less present or less of an obvious investment
03:03front.
03:05Now, when it comes to tariffs, I know we can't escape talking about that.
03:09The new 50 percent tariffs that Donald Trump imposed on 20 billion dollars of Canadian goods are an added burden
03:14for companies inside Canada across industries.
03:18Do you see evidence, Jeff, of Canadian companies behaving like motivated sellers, you know, prepared to solve problems and get
03:25ahead of issues?
03:27I think that tariffs are an element of uncertainty and that's not a particularly helpful headwind that we see.
03:36But investors and sellers are thinking about the issues, how it impacts them and are, I think, rational and going
03:44into sales processes and thinking about how they impact the transactions.
03:49But I don't see it as shutting anything down or causing anyone to be desperate.
03:53And Jeff, how is the regulatory environment evolving and influencing whatever investment decisions do get made?
04:00Well, I think looking at that in two ways from the summit, there is a more desire to streamline regulatory
04:09and to make it a one stop shop where that can be done for where there's a federal review.
04:14We're also seeing, like in many places in the world, that there are regulators, particularly antitrust competition, have more teeth
04:23and they're looking to use those where needed.
04:27But at the same time, we're open for business.
04:30You know, regulators want to be constructive and working with sophisticated advisors helps you navigate that.
04:36And of course, looking ahead, every investor wants to know that they can exit as well.
04:40So, Renee, what do you anticipate the Canadian IPO market to look like in the coming months and years?
04:48There's certainly increased discussion around potential IPOs and what that path looks like in the, I'm going to call it
04:56medium term.
04:59You know, it's certainly like not at 2021 levels, but investors are, as you said, looking for exits and need
05:07to find them out well in advance.
Comments