Calgary Partner Sarah Gingrich and Toronto Partner Sean Stevens comment on M&A trends in the context of U.S. tariffs in an article published in Lexpert.
Sarah Gingrich comments on the possibility that Canadian companies could make acquisitions in the U.S. to avoid the American tariffs on goods they manufacture.
“Obviously, that may not be great for the Canadian economy. But could it be a potential driver for dealmaking in a world with tariffs? Maybe,” said Partner Sarah Gingrich.
For his part, Sean Stevens comments on the probability that earnouts will be used to help bridge the valuation gap between buyer and seller in a context of economic uncertainty.
“Introducing tariffs into the equation means earnouts will likely be more complicated than what we typically see. These will be more challenging to draft, given the numerous scenarios that can play out,” said Partner Sean Stevens.
