Dollarama Inc. helps its customers save money every day. The Montreal-based retailer announced in March that it had entered into an acquisition agreement with The Reject Shop Ltd., Australia’s largest low-cost retailer. This is an example of the potential of mergers and acquisitions to unlock value and transform a business,” said David Savard of National Bank, who acted as financial advisor to Dollarama.
Dollarama, which has more than 1,600 locations across Canada, already holds a 60.1% stake in Dollarcity, a Latin American low-cost retailer. With its latest acquisition, Dollarama expands its reach into a new international market, offering structured growth potential thanks to a well-established platform.
While some Canadian companies are wary of significant fluctuations in their investments during this period of economic uncertainty, strategic thinking should continue to be considered: maintaining a well-thought-out mergers and acquisitions strategy. “This is an environment that favors companies willing to be offensive and defensive and to take advantage of mergers and acquisitions,” explains Mr. Savard, Managing Director and Head of Mergers and Acquisitions and Private Equity Advisory at National Bank.
The market remains active for all players.s
At the beginning of 2025, the M&A environment was very favorable,” adds Savard. Indeed, interest rates were falling, and investor enthusiasm was high. According to a McKinsey report, global private equity has approximately $2 trillion in available funds (the amount of capital committed but not yet deployed) to buy companies around the world, including in Canada.
Although this year has been marked by a highly unpredictable business environment, Mr. Savard says there are still opportunities in Canada for savvy buyers and sellers. Some transactions are still underway.
Objectives vary, from expanding a customer’s or supplier’s presence in new markets to divesting non-strategic lines of business or selling companies outright. Whatever the objective, mergers and acquisitions don’t happen overnight. Neither the buyer nor the seller would want to rush the process. Thorough preparation is crucial for sellers to maximize value and for buyers to maximize transaction benefits without overpaying.
You don’t want to be left winging it just before closing a deal due to insufficient due diligence and a lack of integration planning,” says Savard. “A lack of preparation and inadequate legal and financial support can undermine the financial and operational benefits that well-executed M&A transactions can deliver.”
A rigorous strategy is essential
The challenge for many companies is the lack of in-house M&A expertise. Collaborating with experienced partners can be beneficial to both buyers and sellers.
Expert advice helps sellers determine their objectives and what they can do to achieve the best results in a transaction: from optimal process design and negotiation strategy to transaction structuring and closing. For buyers, the goal is to integrate customized M&A planning into broader growth plans, with guidance on target selection, strategy approach, and transaction execution.
Over the years, National Bank has helped Canadian companies expand abroad and supported international investors looking to acquire companies in Canada. According to Mr. Savard, M&A advisors must foster global connections to succeed in today’s market.
We cover nearly 1,000 funds globally, including private equity funds, wealth management funds, self-managed pension funds, and all major sovereign wealth funds. Canada is attracting a lot of interest, even in the current environment of trade uncertainty.”
Proper planning and rigorous execution, supported by experienced third-party legal and financial advisors, help reduce transaction risks and navigate the current uncertainty to identify and capitalize on buying and selling opportunities.
Companies with well-crafted M&A strategies can take advantage of volatility and conclude advantageous transactions, while their competition remains inactive,” adds Mr. Savard.
He expects an increase in the pool of companies in sectors such as energy, basic materials, technology, services, and certain consumer and industrial products sectors, looking to buy, sell, or find partners to grow.
Despite the current volatility, there are still ways to seize opportunities. “The bottom line is that mergers and acquisitions remain a relevant and highly effective tool for business development, regardless of the market.
