BNN, Business Day: Investing in Takeover Activity
David Barr joined Business Day host Amber Kanwar to discuss M&A activity in the small cap tech sector and how Pender looks for potential investment candidates in this area.
Amber: We talked about how the IPO pipeline hasn’t been as robust and M&A has been in fits and starts, but it looks like within the small cap space, the area you are playing in, you’ve seen some good success.
Dave: The IPO window hasn’t been particularly strong lately but there’s a lot of capital out there chasing companies and we’ve seen that manifest itself with private equity buyers and strategic buyers. You look at private equity companies today and there’s a tremendous amount of capital on the sidelines looking to buy companies and you look at the corporate balance sheets of large cap companies today and a lot of them are flush with cash and you look at the general outlook for a lot of these companies with organic growth slowing down they tend to look for growth elsewhere and it’s generally through acquisition.