Deals involving AI bring about specific and unique issues for consideration during the due diligence process. Understanding the specific challenges created by AI is important for companies to ensure that the AI technology holds genuine value and would not raise red flags during the course of a transaction. Some important advice for companies looking to
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Some Things Change, Some Things Stay the Same: 2023 Investment Canada Act Thresholds Increase, Competition Act Thresholds Remain the Same
The threshold for certain pre-closing net benefit reviews under the Investment Canada Act (ICA) and the threshold for a pre-closing merger notification under the Competition Act have been updated for 2023.For the second year in a row, the Minister of Innovation, Science and Economic Development has announced that the threshold for pre-closing merger notifications under
Privacy and Cybersecurity Due Diligence Considerations in M&A Transactions
Privacy and cybersecurity practices of target companies are being increasingly scrutinized throughout the due diligence process in M&A transactions. Particularly, buyers want to understand the risk and value inherent in sellers’ data assets and sellers want to manage transactional and post-closing risks.In the course of their privacy and cybersecurity due diligence, buyers should consider the
Navigating the Due Diligence Process for Artificial Intelligence Transactions
In recent years, an increasing number of companies have started to employ artificial intelligence (“AI”) technologies in the development of their products and in their day-to-day business. This shift to utilizing AI can be very advantageous given its far-reaching potential impact; however, with fast-paced growth comes complex questions, novel issues and increased uncertainty. Accordingly, in
Promouvoir la rétention des employés clés d’une entreprise dans le cadre d’une transaction
La rétention de la main-d’œuvre clé représente plus que jamais un enjeu d’envergure pour les sociétés. Le caractère intuitu personae du contrat d’emploi participe à cet enjeu puisque, considérant la nature et l’aspect personnel de ce type de contrat, il est impossible de forcer un employé à demeurer à l’emploi d’une entreprise et tout changement
Bill S-211: Impact on M&A Transactions
Despite several interruptions to Parliament over the last few years, Canada continues to move toward affirmation of its commitment to fight against modern slavery in supply chains. The most recent attempt is Bill S-211, An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs
Aspirin, Toothpaste and Cannabis, Please
Since Canada’s legalization of cannabis, the cannabis sector has been a steady source of M&A activity. However, as the novelty of legalization wears off and with the continued stabilization of product demand, market participants have begun evaluating new opportunities and implementing creative M&A strategies to continue their growth in the Canadian market.
One recent example
Timely, or too soon? Competition Bureau releases guidance on “failing firm” claims in merger reviews
On April 29, in a rare decision based on the “failing firm” rationale, the Competition Bureau announced it would not challenge the acquisition of Total Metal Recovery (TMR) Inc. by American Iron & Metal Company Inc. (AIM), because TMR would have likely exited the market without the merger.
The Bureau released a detailed position statement
Competition Bureau Issues Additional Guidance on Competitor Collaboration During COVID-19 Pandemic
Canadian businesses continue to face unprecedented challenges in light of the rapid spread of COVID-19. On March 20, the commissioner of competition provided some guidance for industry on the continuing application of the Competition Act to competitor collaborations, which we summarized in a recent bulletin. In short, the statement indicated that the Competition Bureau’s
Understanding landlord consents in share and asset purchase transactions
Transactions, whether share or asset purchase, may involve the transfer of real property interests. Some important considerations when drafting agreements for these transactions are:
- Are there any leases that are a part of the transferred assets?
- If so, is landlord consent required for assignment or change of control under these leases?
- Are the leases material,