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service (SaaS), big data analytics, online video and social networking. It found the biggest increases in trans- networking, and big data analytics deals. The economic environment in Canada action volume during the first quarter came from deals targeting online video technology and SaaS companies, which also generated the largest deals by dollar value. Similar deal volume strength was seen in mobile applications, health care information technology, advertising and marketing technologies, patents, social is also much more positive than in most other markets, says Ianni. The fundamen- tals are strong for M&A, he says, with corporate cash on the balance sheet, mod- erately rising confidence, and a narrowing evaluation gap between buyers and sellers. But, says Ianni, there' investor in the marketplace. People want to talk, but then hear bad news out of s a new cautious Is Independence Important? You Bet It Is! Greece, Spain or Italy and it slows right down again. "Sellers recognize they want to maximize value but minimize closing risk," he says. "The worst thing you can do is go out in the marketplace and then have a failed deal, because that will translate into reduced valuation down the road. These economic conditions are influ- " encing the way deals are done. We're seeing more preemptive approaches com- pared to pre-recession levels, says Craig Hanna, vice president at Pricewater- houseCoopers. "Previously if you were selling a business you' ferent parties and get a competitive auc- tion going. Now one in three deals are preemptive, meaning buyers seek out a seller on a one-to-one basis." Buyers are more conservative and d talk to 100 dif- selective in this environment. They're looking for technology that fills a gap in their portfolio, for a patent (to use offensively or defensively), to expand geographically, to acquire talent or even to acquire a customer base. With so many collaboration tools now available, where a company's workforce is located is far less of an issue, says Hanna. U.S.-based acquired social performance platform Rypple in Toronto and then invested in the team here, rather than exporting it south of the border. "It' Salesforce, for example, s not something where there's a broad universe of potential buyers — it's Judge's Landmark Ruling Overturns AGM Results. Laurel Hill Remains Undefeated in Canadian Proxy Fights Three Years Running. driving more targeted M&A that has great value to one or two buyers," says Hanna. "They know it and pay premiums to preemptively do deals." There are standard ways to value a manufacturing or resource company with hard assets. But in the tech world, values range widely, and we've seen huge premiums paid for niche or mar- ket-leading technologies. What might be surprising is who and read what every public issuer in Canada needs to know. Independence | Experience | Results Go to laurelhill.com/landmarkdecision.aspx 36 • OCTOBER/NOVEMBER 2012 ntitled-1 1 INHOUSE 12-08-24 11:31 AM these buyers are. According to PwC, close to 50 per cent of deals involv- ing a Canadian buyer in 2011 and the first half of 2012 targeted other Cana- dian businesses, while 35 per cent were acquisitions of U.S. companies. The remainder targeted businesses in the European area, Australia/New Zealand, and Asia. "The buyer might be someone across

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