Canadian M&A activity improved slightly in the second quarter of 2013 but still remained below traditionally “normal” levels, according to a report recently published by Crosbie & Company. Nonetheless, a number of large transactions brought up the total value of Q2 M&A deals to the third highest sum in 8 quarters.

According to Crosbie, 234 deals were announced in Q2, with a total aggregate value of $44.7B. This represents modest growth of 9.4% in activity over Q1, but a significant 52%  increase in the aggregate value of all deals. Looking back, when these figures are compared to the second quarter of 2012, Q2-2013 showed 3% less activity but a 27.2% increase in the total value of all deals.

Cross-border M&A continued to play an important role in Q2-2013, with a total of 90 cross-border transactions  representing 38.5% of total M&A activity in the quarter and 58.3% of total aggregate deal value. As Crosbie notes, Canadian companies were far more active in making foreign acquisitions than foreign companies were in making Canadian acquisitions, by a ratio of 3.3:1. This is an all-time high.

As could be expected, the vast majority of deal flow occurred in the mid-market range (transactions valued under $250M). In this range, 207 transactions with a total aggregate value of $9.2B accounted for 88% of total M&A activity in Q2-2013, and 21% of the total value of all deals. On the other hand, 11 mega-deals (transactions valued over $1B) accounted for another $27.9B of total aggregate deal value in Q2-2013, which is in line with normal historical levels.

Although not quite there yet, these figures may represent the start of a turnaround for Canadian M&A.