Canadian Mid-Market
In Q2 2026, the Bank of Canada (BoC) maintained its policy rate at 2.25% at both its April and June meetings. The BoC balanced weak economic activity and available capacity in the Canadian economy against inflationary pressures from elevated oil prices, the ongoing conflict in the Middle East, and continued uncertainty surrounding United States (U.S.) trade policy.
M&A activity declined by 14.8% quarter-over-quarter (QoQ) in Q2 2026, with transaction volume falling from 284 deals in Q1 2026 to 242 in Q2 2026. While trade tensions, inflationary pressures, and geopolitical uncertainty weighed on overall activity, buyers continued to pursue transactions aligned with their long-term growth objectives. Strategic buyers accounted for 93.8% of transactions, focusing on acquisitions that strengthened their competitive positioning. Financial buyers remained active primarily through add-on acquisitions undertaken by existing portfolio companies. M&A activity is expected to increase over the remainder of 2026, supported by strategic consolidation and continued pressure on private equity firms to deploy substantial amounts of uninvested capital. The above chart summarizes transaction count by sector in Q2 2026 and select sector highlights are noted below:
242
Transactions
Energy 14
Consumer Staples 11
Utilities 02
Materials 34
Industrials 72
Financials 27
Information Technology 45
Communication Services 04
Consumer Discretionary 14
Healthcare 19
Q2 2026 Transaction Count by Sector
The Information Technology sector followed with 45 transactions, accounting for 18.6% of total transactions in Q2 2026. A notable announced transaction within the Information Technology sector was Redwood AI Corp.’s acquisition of Quantum.IQ Technologies Inc. at an implied EV of $91.2 million.
The Industrials sector led the quarter with 72 transactions, accounting for 29.8% of total transactions in Q2 2026. A notable announced transaction within the Industrials sector was Universal Protection Service LP’s acquisition of SSC Security Services Corp. at an implied Enterprise Value (EV) of $82.7 million.
The Healthcare sector recorded 19 transactions in Q2 2026, representing 7.9% of the total transaction count in the quarter. A notable announced transaction within the Healthcare sector was Vireo Growth Inc.’s acquisition of FLUENT Corp. at an implied EV of $213.8 million.
Quarterly Transaction Count
Transaction Count
Equity Markets
Canadian Mid-Market
Select M&A Transactions
Equity Markets
Canadian Economic Update
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The S&P/TSX Composite Index (TSX) gained 5.8% in Q2 2026, with 7 out of 10 sectors and 99 of 202 constituents (excluding real estate) generating positive returns.
The Financials sector gained 23.8% in Q2 2026, outpacing the broader market. Twenty of the sector’s 23 constituents posted positive returns in Q2 2026, led by Great-West Lifeco Inc., whose shares gained 37.8%.
The Information Technology sector recorded the second-highest return in Q2 2026, gaining 14.2%, with six of its nine constituents posting positive returns. BlackBerry Limited led the sector, with its share price increasing by 282.7% during the quarter.
The Healthcare sector gained 12.0% in Q2 2026, with three of its five constituents posting positive returns. Curaleaf Holdings, Inc. led the sector, with its share price increasing 64.1% after announcing a one-for-three reverse stock split to support a potential uplisting to a major U.S. stock exchange.
The Materials sector declined 14.4% in Q2 2026, with 47 of its 60 constituents reporting negative returns. The sector was pressured by weakness among precious metals producers as lower gold and silver prices reduced investor optimism toward the earnings outlook for mining companies.
Q2 2026 Sector Performance
Materials
(14.4%)
Utilities
4.4%
Consumer Staples
3.0%
Energy
(8.7%)
Communication Services
(8.3%)
Financials
23.8%
Industrials
9.4%
Consumer Discretionary
7.2%
Information Technology
14.2%
Healthcare
12.0%
Redwood AI Corp. (Redwood AI)
Universal Protection Service LP, doing business as Allied Universal (Allied Universal),
Vireo Growth Inc. (Vireo)
is acquiring
Announced June 26, 2026
Implied EV $91.2M
EV/EBITDA Not Disclosed
EV/Revenue Not Disclosed
Redwood AI Corp. (Redwood AI) is a chemistry technology company that uses artificial intelligence (AI) to accelerate chemistry research and development across pharmaceutical and biotechnology applications. The company's platform analyzes chemical and experimental data to reduce development complexity and improve manufacturing efficiency, helping organizations bring new therapies and other chemistry-driven innovations to market more quickly and cost-effectively. Founded in 2022, Redwood AI is based in Vancouver, British Columbia (B.C.).
Quantum.IQ Technologies Inc. (Quantum.IQ) is an AI-driven cybersecurity company focused on cryptographic intelligence, quantum-resistant security solutions, and enterprise security infrastructure modernization. The company's software helps government, defence, financial services, and critical infrastructure organizations assess and strengthen encryption systems against future quantum-enabled cyber threats. Founded in 2025, Quantum.IQ is based in Vancouver, B.C.
The acquisition is expected to enhance Redwood AI’s technology platform while significantly expanding the company’s addressable market across enterprise resilience, critical infrastructure modernization, and security-sensitive applications.
is acquiring
Announced May 26, 2026
Implied EV $82.7M
EV/EBITDA 15.1x
EV/Revenue 0.6x
Universal Protection Service LP, doing business as Allied Universal (Allied Universal), is a global security and facility services company that provides security personnel, technology-enabled protection services, and risk management solutions to help organizations protect people, property, and critical assets. Allied Universal operates in more than 100 countries and serves commercial, government, healthcare, education, and critical infrastructure customers. Founded in 1957, Allied Universal is based in Santa Ana, California.
SSC Security Services Corp. (SSC) is a provider of security and protection services, offering solutions including security personnel, mobile patrols, alarm response, and integrated security services. The company serves clients across commercial, industrial, and public sector markets. Founded in 2012, SSC is based in Regina, Saskatchewan.
The acquisition of SSC is expected to strengthen Allied Universal’s presence in the Canadian security market by adding scale, enhancing the company’s integrated service offering, and expanding the company’s reach across commercial, industrial, and public-sector customers.
is acquiring
Announced April 29, 2026
Implied EV $213.8M
EV/EBITDA Not Disclosed
EV/Revenue 1.9x
Vireo Growth Inc. (Vireo) is a cannabis company engaged in the cultivation, processing, and retail sale of medical and recreational cannabis products. The company is a multi-state operator active in six regulated cannabis markets across Maryland, Minnesota, Missouri, Nevada, New York, and Utah. Founded in 2014, Vireo is based in Minneapolis, Minnesota.
FLUENT Corp. (FLUENT) is a vertically integrated cannabis company engaged in the cultivation, manufacturing, distribution, and retail sale of medical and recreational cannabis products. The company operates through a network of dispensaries and production facilities across key limited-license markets, including Florida, New York, Pennsylvania, and Texas. Founded in 2010, FLUENT is based in Tampa, Florida.
The acquisition of FLUENT will strengthen Vireo's position in the U.S. cannabis market by significantly expanding its presence in Florida, which is one of the country's largest medical cannabis markets.
S&P/TSX Composite Index (^GSPTSE) - Index Value
5.76%
About MNP Corporate Finance
The Canadian dollar weakened against the U.S. dollar in Q2 2026, with the USD/CAD exchange rate rising from 1.39 at the end of Q1 2026 to 1.42 at the end of Q2 2026. The depreciation was driven by a widening interest-rate differential between the two countries.
Real gross domestic product (GDP) declined at an annualized rate of 0.1% in Q1 2026, marking a second consecutive quarterly contraction, despite preliminary monthly estimates indicating growth of nearly 2.0%. Early indicators point to a return to growth in Q2 2026.
Seasonally adjusted annualized housing starts increased to an estimated 257,000 units in Q2 2026 from 242,000 units in Q1 2026. The increase largely reflected a surge in multi-unit construction in April 2026, particularly in Toronto and Montreal. However, starts moderated in May and June 2026.
In Q2 2026, CPI increased to 2.9% from 2.1% in Q1 2026, remaining above the BoC’s 2.0% target. Inflation was driven primarily by elevated energy prices, although headline CPI eased to 2.8% in June 2026 from 3.2% in May 2026 as gasoline price growth moderated.
Canada’s unemployment rate averaged 6.7% in Q2 2026, compared to 6.6% in Q1 2026, while the labour force participation rate remained stable at 65.0%. Employment conditions improved late in the quarter, supported by a net gain of 88,000 jobs in May 2026.
CAD/USD Exchange Rate
CAD Per USD
Historical
Forecast
1.37
Note: TD forecasts a Q3’26 CAD/USD exchange rate of 1.37.
2026F
2.25%
2025
2.25%
Year
Canada
Overnight Rate
(%)
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Canadian Economic Update
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From Coast to Coast
Hands-on Approach
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Local & International Reach
Integrated Service Offering
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From Coast to Coast
MNP Corporate Finance (MNPCF) has a dedicated team of over 100 M&A, capital markets, and due diligence professionals across Canada. MNPCF works with clients in virtually all industries as they prepare, plan, and execute transactions. Our typical transactions range in value between $3 million and $300 million.
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Hands-on Approach
Current M&A transactions require a hands-on approach from start to finish including the active engagement of senior resources. Our senior resources are dedicated to our clients and are available as necessary and appropriate. We keep our clients regularly informed of the engagement status, issues we are encountering, successes, and overall progress.
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Local & International Reach
MNP is a participating firm within Praxity, a unique global alliance of independent accounting/advisory firms created to answer global business needs. As a member of Praxity, we are able to offer access to corporate finance, accounting, and tax advisory services worldwide.
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Integrated Service Offering
We draw on the vast experience and deep specialist knowledge network of our partners locally, nationally, and internationally as specialty issues arise, such as pre-transaction tax planning, transaction structuring, estate planning, valuation, due diligence, performance improvement, and risk management.
MNP Corporate Finance is a leader in providing transaction advisory services, including divestitures, financing, due diligence and acquisitions. With offices strategically located across Canada, we have the experience and expertise organizations need to take advantage of emerging opportunities in the national and global marketplace.
350+
Closed transactions (last 10 years)*
6B+
Total enterprise value (last 10 years)*
Helping clients prepare, plan & execute transactions
Food & Beverage
Retail & Distribution
Manufacturing
Agriculture
Transportation
Construction
Software
Financial Services
Materials
Healthcare
Pharmaceutical
Technology
Energy
Oilfield Services
Real Estate
Automotive
Industry Experience
Quarterly Industry Reports Q2 2026
Agriculture
Dealerships
Engineering & Construction
Food & Beverage
Healthcare Services
Manufacturing
Oilfield Services
Technology
* Data Sources are listed in the downloadable report
Divestitures
+
Acquisitions
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Financing
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Due Diligence
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Transaction Advisory Services
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Learn more about our services
View our transactions
*Does not include due diligence engagements
Select Q2 2026 M&A Transactions - Canada
Sector
Return
1.42
Q3'25
Q4'25
Q1'26 Q2'26
2.50%
2.25%
2.25%
2.25%
2026F
0.7%
Q3'25
Q4'25
Q1'26 Q2'26F
1.9%
(1.0%)
(0.1%)
1.9%
2025
1.9%
Year
Canada
Real GDP Growth (QoQ % change)
2026F
6.6%
Q3'25
Q4'25
Q1'26 Q2'26
7.0%
6.7%
6.6%
6.7%
2025
6.8%
Year
Canada
Unemployment Rate (%)
2026F
246
Q3'25
Q4'25
Q1'26 Q2'26
273
255
242
257
2025
258
Year
Canada
Housing Starts ('000s)
2026F
2.5%
Q3'25
Q4'25
Q1'26 Q2'26
2.0%
2.2%
2.1%
2.9%
2025
2.1%
Year
Canada
Consumer Price Index (YoY % change)
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