Ernst & Young said that history has shown us that the period following a downturn often polarizes markets, as some companies struggle to keep up with those moving full-steam ahead and Canada will be no exception, particularly with respect to oil and gas, oilfield services in Alberta and Saskatchewan, and construction in British Columbia.

But despite the number of distressed and well-priced assets, many feel restricted from realizing acquisition opportunities. Obstacles identified include valuation uncertainty and complexity (65%); insufficient financing (62%); investor caution (60%); and increased transaction risk (57%).

The strength of Canada's banking sector and the return of private equity is slowly starting to make financing for small and mid-size transactions more readily available. However, only 36 percent of businesses feel they are positioned to act quickly and exploit acquisition opportunities. This implies that a sizable portion of businesses will be able to acquire distressed assets with limited competition for at least the next six months.

Other survey highlights from Why capital matters include the following:

-Twenty-five percent of global businesses are likely or highly likely to acquire in the next six months, rising to 33% in the next 12 months and up to 41% over the next 12 to 24 months.

-Forty-five percent of executives expect to see an increase in the number of distressed asset sales in the next 12 months.

-Sixty-three percent of respondents saw the most attractive acquisition opportunities within their own national or domestic markets.