Fasken’s Exit Insights, a first-of-its-kind report on exit trends among VC-backed and high-growth technology companies across Canada, is highlighted in an article published in the Vancouver Tech Journal (VTJ).
Drawing on the trends identified in Fasken’s report, the article emphasizes the importance for founders to plan for a possible exit at every stage of their companies’ growth.
“What Fasken’s data shows, more than anything, is that exits fail less often because of valuation and more often because of lack of preparation,ˮ writes William Johnson, from the Vancouver Tech Journal. “The best exits don’t come from improvisation at the finish line. They’re built quietly, deliberately, years in advance.ˮ
The article highlights key findings from the report founders should factor into their strategic planning such as the fact that companies are mostly sold early in their growth cycle, with 77% of exits falling into the $50 million to $500 million bracket, and the prevalence of strategic buyers (82% of deals) in Canadian tech exits.
Other transaction mechanisms analyzed in Fasken’s report, such as purchase price adjustments, earnouts and Material Adverse Effects clauses, are also discussed in the article.
Exit InSights was authored by a team of leading partners from Fasken’s Emerging Technology & Venture Capital Practice Group. The report analyzes more than 250 deal points from Canadian tech M&A transactions completed between 2019 and 2024.
Read the full report here.
