Canadian Mid-Market M&A Remains Resilient Amid Ongoing Uncertainty

Key trends shaping Canada’s middle-market M&A landscape in H1 2026

Canada’s mid-market M&A landscape remained resilient during the first half of 2026, despite trade tensions, persistent inflationary pressures and geopolitical uncertainty. A total of 427 mid-market transactions were completed during the period, reflecting continued interest from both domestic and international buyers.

Although tariff uncertainty and the upcoming CUSMA renegotiation continue to influence investment decisions, several factors are supporting transaction activity. These include succession planning among aging business owners, pressure on private equity firms to deploy capital, consolidation across fragmented industries and the growing use of AI to improve operational efficiency.

Strategic buyers with strong balance sheets continued to outpace financial investors, particularly in the industrial, technology, healthcare and consumer sectors. Business services, food and beverage, healthcare, defence and security, as well as AI, data centres and cybersecurity, were among the most active segments.

Cross-border activity with the United States also remained strong, as American investors continued to identify attractive opportunities in the Canadian market.

Oaklins Canada contributed to this activity by advising C3F Telecom on its successful sale to Techno Lignes Abitibi. The transaction brought together two complementary providers of telecommunications infrastructure services and positioned the combined organization for continued growth across Quebec and Eastern Canada.

Strategic buyers continue to pursue high-quality companies that can strengthen their capabilities, accelerate digital transformation and improve supply-chain resilience. As market confidence and valuation levels recover, we expect transaction activity to gain momentum during the second half of 2026. Ryan Ma, Managing Partner, Toronto Office - Oaklins Canada

We hope you find this report insightful and look forward to further discussions with you.