While tightening credit conditions resulting from higher interest rates, inflation and economic uncertainty have culminated in reduced middle market activity, economists indicate that middle market valuations have demonstrated reasonable resilience in recent months. This is especially so for quality businesses (lead by industrials, business services and food and agriculture businesses) where financial sponsors and strategic corporates are looking to invest and acquire. Many buyers are looking to secure supply lines that COVID-19 exposed as overly dependent on foreign suppliers. Other potential buyers represent substantial amounts of deployable capital looking for investment opportunities. Some sellers, on the other hand, may lack liquidity or capital for growth given the current uncertainty and challenging interest rate environment, and some founders may simply be ready to redeploy their capital or retire.



About Allen McDonald Swartz LLP

Allen McDonald Swartz LLP provides strategic counsel, sophisticated business law advice and exceptional client service to Canadian and international clients. The firm’s lawyers — Jennifer Allen, Henry Bertossi, Brad Elberg, Fraser McDonald, Eden Oliver and Jillian Swartz — are all Bay Street veterans and provide their clients with experience and expertise that match BigLaw. Their clients include entrepreneurs, high-net-worth individuals, family-owned businesses, private and public companies, multi-national enterprises, law firms, independent committees, charities and not-for-profit organizations. The lawyers at AMS advise clients on mergers and acquisitions, reorganizations, privacy and anti-spam, financings, securities compliance and regulatory work, capital markets transactions, governance and business-critical commercial arrangements. The firm’s lawyers have experience across a diverse range of industries, including agribusiness, alternative energy, automotive, consumer products, event planning & hospitality, manufacturing, professional services (including dental, medical, and veterinary), media, sports & entertainment, technology, mining & natural resources and private equity.