An exclusive regional look at Canadian M&A advisory fees in the middle market.
TORONTO, Oct. 6, 2023 /PRNewswire-PRWeb/ — Firmex®, a global provider of virtual data rooms, announced the release of the first Canadian edition of their annual M&A Fee Guide. This special report outlines key points of interest on M&A fees in Canada using data from Firmex’s 6th annual M&A Fee Guide 2022-2023 survey, updated with additional commentary from leading advisors in Canada.
“We are encouraged to see that for firms in Canada, merger fee levels are holding steady and that almost half of respondents surveyed report increasing fees,” said Mark Wright, Firmex’s general manager. “Many Canadian advisors have described an uncertain Canadian deal market, with recessionary fears creating a backlog of deals soon to come to market. While there’s still some wariness, advisors continue to work hard for their clients, and their value is reflected in the business they are able to generate despite the challenge.”
Additional key survey findings include:
- Most firms said their profitability has been steady. Of the rest, more said profitability increased than said it declined.
- The number of firms that don’t charge a retainer or work fee in addition to a success fee increased to 19%.
- More than half of the advisors said their revenue from M&A fees has been increasing.
- Three-quarters of firms said there was no change in the pressure to cut fees. Only 12% of firms said the pressure increased.
These insights into Canadian market dynamics are drawn from survey responses of advisors based in Canada who filled out Firmex’s North American fee study conducted in late 2022. Respondents consist of investment bankers, business brokers, and merger advisors in the middle market. Firmex has published similar guides since 2016.
The full report can be downloaded on the Firmex website.
Edward Stephen, Firmex, 1 416-840-4241, [email protected]