Canada's forestry, industrial and media/technology sectors were hit the hardest during the low point of the economic downturn, according to a PricewaterhouseCoopers (PwC) report released today.
The problem, the report said, was the triad of sectors had trouble accessing capital as their cash flows decreased and debt loads increased.
That meant more debt defaults in those sectors that included: Nortel Networks Corp., Canwest Media Inc., Abitibi-Consolidated Inc., Fraser Papers Inc. and Grant Forest Products.
"While companies in the industrial, forestry and media/telecom sectors faced significant financing challenges from 2007 to 2009, the energy and materials companies weathered the recession well," said Kristian Knibutat, PwC's national deals leader.
He said energy and materials companies are poised for mergers and acquisitions activity this year, and would likely tap equity and debt markets to strengthen their cash positions.
"Canadian companies did well in riding out the recession compared to their global counterparts," said Knibutat. "With their lower debt levels and cash in hand now is a good opportunity for acquisitions within Canada and abroad."