M&A Market Update: Key Trends in Australian Corporate Deals

Australian mergers and acquisitions (M&A) market experienced significant growth, with deal volumes and values reaching new heights

In 2018, the Australian mergers and acquisitions (M&A) market experienced significant growth, with deal volumes and values reaching new heights. This upward trend is expected to continue into 2019, driven by strategic acquisitions, high-value deals, and increased international interest. Businesses must navigate this evolving landscape with expert advisory to capitalize on opportunities for growth and diversification.

The Australian M&A market concluded 2018 with a record-breaking performance. Deal volumes increased by 5%, totaling 1,184 deals, while deal values surged by 34% to AU$164.1 billion. This marked the highest annual total since 2015, indicating a strong appetite for corporate transactions.

Key Drivers of M&A Activity

Several factors contributed to the heightened M&A activity in 2018:

• Strategic Acquisitions: Companies pursued acquisitions to enhance capabilities, enter new markets, and achieve economies of scale.

• High-Value Deals: Notable transactions included significant deals in the telecommunications, real estate, healthcare, and consumer sectors.

• International Interest: Foreign investors showed increased interest in Australian assets, attracted by the country's stable economic environment and growth prospects.

  
  

Outlook for 2019

The momentum from 2018 is expected to carry into 2019, with continued strategic acquisitions and high-value deals anticipated. However, businesses must remain vigilant to potential challenges, including regulatory changes and market volatility.

Implications for Businesses

To navigate the evolving M&A landscape effectively, businesses should:

• Engage Expert Advisory: Consult with experienced advisors to identify suitable acquisition targets and assess potential risks.

• Conduct Thorough Due Diligence: Ensure comprehensive evaluations of financials, operations, and cultural fit to facilitate successful integrations.

• Stay Informed on Regulatory Changes: Monitor developments in M&A regulations to maintain compliance and avoid potential pitfalls.

The Australian M&A market in 2018 demonstrated robust growth, setting the stage for continued activity in 2019. By leveraging expert advisory services and conducting thorough due diligence, businesses can capitalize on opportunities for growth and diversification in this dynamic environment.

If you would like to enquire about your M&A strategy or need assistance navigating the latest market trends, book a complimentary consultation with DGMS Group.

1. Pitcher Partners. (2019). Mid-Market M&A Australia 2019: A snapshot of dealmakers in the Australian M&A market. Retrieved from https://www.pitcher.com.au/wp-content/uploads/2020/09/Pitcher-Partners_dealmakers-mid-market-ma-australia-2019_final.pdf

2. Herbert Smith Freehills. (2019). Australian Public M&A Report 2019. Retrieved from https://www.herbertsmithfreehills.com/insights/2019-10/australian-public-ma-report-2019