Canadian Mid-Market
In Q1 2025, the Bank of Canada (BoC) implemented two interest rate cuts of 25 basis points (bps) each, reducing the overnight rate from 3.25% to 2.75%. The interest rate cuts occurred in January and March 2025 in response to easing inflation and slower-than-expected economic growth. Despite a more favourable interest rate environment, M&A activity noticeably declined in Q1 2025. This downturn was primarily attributable to uncertainty surrounding U.S. tariffs, trade policy shifts, and heightened regulatory scrutiny. This uncertainty has made buyers and sellers more cautious, which may delay deals in the short term. Consequently, many transactions that may have otherwise taken place during the quarter were deferred.
M&A activity declined by 35.1% quarter-over-quarter, with the number of transactions decreasing from 336 in Q4 2024 to 218 in Q1 2025. The adjacent chart summarizes transaction count by sector in Q1 2025. Corresponding sector highlights are noted below:
218
Transactions
Consumer Staples 12
Utilities 04
Materials 20
Industrials 55
Financials 28
Information Technology 43
Consumer Discretionary 15
Health Care 22
Energy 04
Communication Services 15
Q1 2025 Transaction Count by Sector
The Information Technology sector followed with 43 transactions, accounting for 19.7% of the total transaction count in Q1 2025. A notable transaction within the Information Technology sector was Siyata Mobile Inc.’s acquisition of Core Gaming, Inc. at an EV of $160 million.
The Industrials sector led the quarter with 55 transactions, accounting for 25.2% of the total transaction count in Q1 2025. A notable transaction within the Industrials sector was Exchange Income Corporation’s acquisition of Bradley Air Services Limited at an Enterprise Value (EV) of $205 million.
The Energy sector saw the fewest transactions in Q1 2025, with only four deals, down from 21 in Q4 2024. The decline was mainly driven by uncertainty over the U.S. government's proposed 10% tariff on Canadian energy exports, which disrupted global trade partnerships and supply chains.
Quarterly Transaction Count
Transaction Count
Equity Markets
Canadian Mid-Market
Select M&A Transactions
Equity Markets
Canadian Economic Update
About Us
Download the full report
The S&P/TSX Composite Index gained 0.1% in Q1 2025, with 5 of 10 sectors and 97 of the 199 constituents (excluding real estate) experiencing positive returns.
The Materials sector recorded a gain of 16.1% in Q1 2025, outperforming the broader market. G Mining Ventures Corp. led the sector with a 73.8% increase in share price, fueled by robust quarterly financial results.
The Utilities sector saw a 3.5% return in Q1 2025, with 11 out of 15 constituents achieving share price appreciation. Innergex Renewable Energy Inc. led the sector with a 68.1% increase in share price after announcing a definitive agreement to be acquired by CDPQ.
The Consumer Staples sector recorded a 2.5% increase in Q1 2025. Performance varied across the sector, with 6 of 10 constituents posting gains. Sector growth was primarily driven by Maple Leaf Foods Inc., which saw a 23.3% rise in share price.
The Healthcare sector suffered the largest downturn in Q1 2025, declining by 16.7%. The decline was primarily driven by Tilray Brands, Inc.’s weaker-than-expected year-over-year revenues. Bausch Health Companies Inc. also experienced a steep decline, with its share price plummeting 19.7%.
Q1 2025 Sector Performance
Materials
16.1 %
Utilities
3.5%
Consumer Staples
2.5%
Energy
1.2%
Communication Services
0.8%
Financials
(1.9%)
Industrials
(2.4%)
Consumer Discretionary
(3.0%)
Information Technology
(8.6%)
Healthcare
(16.7%)
Exchange Income Corporation (EIC)
Siyata Mobile Inc. (Siyata)
Cerrado Gold Inc. (Cerrado Gold)
is acquiring
Announced Feb 24, 2025
EV $205.0M
EV/EBITDA Not Disclosed
EV/Revenue Not Disclosed
Exchange Income Corporation (EIC) is a diversified, acquisition-oriented dividend company focused on opportunities in aerospace, aviation, and manufacturing. EIC’s subsidiaries provide essential products and services to communities across Canada and globally. EIC was founded in 2002 and is based in Winnipeg, Manitoba.
Bradley Air Services Limited (doing business as Canadian North) is an airline company that connects people and delivers goods throughout Northern communities in Canada. Bradley Air Services operates First Air, Canada’s largest Northern airline, and services 34 communities in Nunavut, Nunavik, and the Northwest Territories. Following the merger between First Air and Canadian North in 2019, the combined operations now operate as Canadian North. Bradley Air Services was founded in 1946 and is based in Kanata, Ontario.
The acquisition of Bradley Air Services provides EIC with a unique opportunity to acquire a Northern airline that operates in adjacent regions and on highly complementary routes to those serviced by EIC.
is merging with
Announced Feb 26, 2025
EV $160.0M
EV/EBITDA Not Disclosed
EV/Revenue Not Disclosed
Siyata Mobile Inc. (Siyata) engages in the development and sale of cellular-based communications platforms in the US, Canada, Europe, Australia, the Middle East, and internationally. It designs, markets, and sells handheld push-to-talk cellular devices for first responders, businesses, construction workers, security personnel, government agencies, and other mobile professionals across multiple industries. Siyata was founded in 1986 and is based in Montreal, Quebec.
Core Gaming, Inc. (Core Gaming) develops and publishes artificial intelligence (AI) mobile games worldwide. Core Gaming engages 40 million monthly active users, and has an extensive worldwide distribution platform, which has led to over 600 million downloads. Core Gaming was founded in 2024 and is based in Wilmington, Delaware.
The merger with Core Gaming represents Siyata’s pivot into the fast-growing mobile gaming sector and unlock greater shareholder value, as the deal offers exposure to a higher-growth industry and a premium over Siyata’s previous market valuation.
is acquiring
Announced Feb 3, 2025
EV $46.8M
EV/EBITDA Not Disclosed
EV/Revenue Not Disclosed
Cerrado Gold Inc. (Cerrado Gold) is a mining company specializing in the production, development, and exploration of gold and iron ore projects across the Americas. It holds 100% interest in three key projects: Minera Don Nicolás (333,400 hectares) in Argentina, Monte do Carmo (82,541 hectares) in Brazil, and Mont Sorcier (1,919 hectares) in Canada. Cerrado Gold was founded in 2017 and is based in Toronto, Ontario.
Ascendant Resources Inc. (Ascendant Resources) is a mining company specializing in the exploration and development of polymetallic mineral projects. Ascendant Resource’s primary focus is the Lagoa Salgada project, located on the Iberian Pyrite Belt in Portugal, where a volcanogenic massive sulphide (VMS) deposit contains significant quantities of zinc, copper, lead, tin, silver, and gold. Ascendant Resources was founded in 2006 and is based in Toronto, Ontario.
The acquisition of Ascendant Resources strategically enhances Cerrado’s portfolio with a high-margin, low-cost asset while increasing exposure to precious metals and critical minerals.
S&P/TSX Composite Index (^GSPTSE) - Index Value
0.1%
About MNP Corporate Finance
The Canadian Dollar (CAD) remained stable against the United States Dollar (USD), ending the quarter at 1.44 CAD/USD — the same rate as at the end of Q4 2024. Despite remaining stable at quarter-end, the CAD saw a rapid decline during the initial threat of tariffs in January 2025.
The Canadian economy continued to grow in Q1 2025, with real Gross Domestic Product (GDP) estimated to have increased by 1.7% quarter-over-quarter. Business sentiment has deteriorated due to the trade conflict with the U.S., as fewer businesses expect sales to improve over the coming year.
Q1 2025 saw an estimated 237,000 housing starts, down 11,000 units from Q4 2024. Average annual housing starts are expected to decrease in 2025 due to rising construction costs, caution among developers due to trade-related uncertainty, and slower population growth.
The Consumer Price Index (CPI) is forecasted to grow from 1.9% in Q4 2024 to 2.4% in Q1 2025. Reasons for the upswing include less excess supply, stronger oil prices, higher import prices resulting from the lower Canadian dollar, and the U.S. tariffs.
Canada’s unemployment rate remained steady from Q4 2024 to Q1 2025, decreasing from 6.7% to 6.6%. The labour force is forecasted to grind to a halt in the second half of 2025 due to slower immigration under Canada’s recent policy shifts.
CAD/USD Exchange Rate
CAD Per USD
Historical
Forecast
1.39
Note: RBC forecasts a Q2’25 CAD/USD exchange rate of 1.39.
2025F
2.25%
2024
3.25%
Year
Canada
Overnight Rate
(%)
Download the full report
Candian Economic Update
+
From Coast to Coast
Hands-on Approach
+
+
Local & International Reach
Integrated Service Offering
+
+
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.
+
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.
+
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.
+
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.
300+
Closed transactions (last 10 years)*
5B+
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 Q1 2025
Agriculture
Dealerships
Engineering & Construction
Food & Beverage
Healthcare Services
Manufacturing
Oilfield Services
Technology
* Data Sources are listed in the downloadable report
Divestitures
+
Acquisitions
+
Financing
+
Due Diligence
+
Transaction Advisory Services
+
Learn more about our services
View our transactions
*Does not include due diligence engagements
Select Q1 2025 M&A Transactions - Canada
Sector
Return
1.44
Q2'24
Q3'24
Q4'24
Q1'25
4.75%
4.25%
3.25%
2.75%
2025F
1.8%
Q2'24
Q3'24
Q4'24
Q1'25
1.1%
1.5%
1.8%
1.7%
2024
1.3%
Year
Canada
Real GDP Growth (YoY % change)
2025F
6.9%
Q2'24
Q3'24
Q4'24
Q1'25
6.3%
6.6%
6.7%
6.6%
2024
6.4%
Year
Canada
Unemployment Rate (%)
2025F
227
Q2'24
Q3'24
Q4'24
Q1'25
250
238
248
237
2024
245
Year
Canada
Housing Stats ('000s)
2025F
2.2%
Q2'24
Q3'24
Q4'24
Q1'25
2.7%
2.0%
1.9%
2.4%
2024
2.4%
Year
Canada
Consumer Price Index (YoY % change)
Quarterly Industry Reports Q1 2025
Agriculture
Dealerships
Engineering & Construction
Food & Beverage
Healthcare Services
Manufacturing
Oilfield Services
Technology
Canadian M&A transaction count declined to 307 this quarter, down from 382 in Q3 2024. The materials and industrials sectors led the way in Q4, with 77 and 55 transactions, respectively. The utilities sector saw the fewest transactions — with only one deal in Q4 2024, decreasing from the five recorded in Q3 2024.
The Bank of Canada cut interest rates in October and December 2024 in response to easing inflation and slower-than-expected economic growth. However, M&A activity notably declined this quarter as companies adopted a more cautious approach, influenced by expectations of further rate cuts and uncertainties regarding proposed U.S. tariffs.
Canada's Middle Market M&A Update – Q1 2025
Quarterly Industry Reports Q1 2025
Agriculture
Dealerships
Engineering & Construction
Food & Beverage
Healthcare Services
Manufacturing
Oilfield Services
Technology