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Despite a 14% global decline in Agribusiness, Food, and Beverage M&A deals, 2024 shows promise with expected global interest rate stabilisation. Given the sector's role in global sustainability, businesses can tap into opportunities in food manufacturing and waste minimisation.

Driven by consumer demand, Australia's food and beverage manufacturing sector has seen a rise in health-focused businesses. Despite market growth, challenges like supply disruptions persist, leading to notable insolvencies in 2023. We've observed a notable increase in interest from over 100 potential acquirers for brands aligned with healthier products. But timing is critical for struggling businesses – early intervention and strategic planning are key.

M&A deal volumes and IPOs are down during economic uncertainty – but that hasn’t stopped Australia being an attractive investment opportunity.

Over the past 18 months, we have seen a consistent level of deal activity despite significant headwinds which have impacted the Agribusiness, Food & Beverage (Ag, F&B) sector and the broader economy. Through our analysis of 1,466 global transactions for the Ag, F&B sector in the 18-month period to December 2022, transaction multiples have remained strong – a pleasing result for businesses undertaking divestment activity.

We’ve made it to the other side of COVID-19, but what does this mean for businesses feeling significant headwind on the horizon post-pandemic?

While Australia has shown strong acquirer appetite and businesses from all industries are finding great success and outstanding returns with their acquisition and divestment strategies, M&A activity now faces an uncertain future.

When it comes to M&A transactions, businesses can often be eligible for GST refunds – but how do you determine if this is the case, and how much is recoverable? In our latest Tax in M&A series, we look at a threshold test that can be applied to transactions whereby businesses only make limited financial supplies. But there is a limit to how much GST can be claimed back when the Financial Acquisitions Threshold (‘FAT’) has been exceeded.

There have been pressure systems gathering momentum along two fronts. Whilst they have largely gone unnoticed by many in the industry, collisions between the two have occurred and left some casualties in the M&A space. Previously, it was regarded by many deal-makers that employer obligations were quite low in risk. However, multiple enforcement agencies are focusing on unpaid employee entitlements and contract hire labour. The uptick in compliance activity has coincided with growth in the M&A space, leading many to believe there are huge levels of unquantified risk in the market – often not covered by warranty and indemnity insurance.

The choice between a share sale and an asset sale involves many different considerations – including commercial, legal and tax. It is important to remember that stamp duty obligations can also be quite different depending on what type of transaction is chosen. Here we explore some of the instances when stamp duty can impact tax obligations and add to the cost of M&A significantly.

M&A deal volumes are up – the most they have been since 2010. A new sector has taken the top spot for the number of transactions in the market.

M&A activity has had a significant uptick during the pandemic, with cashed-up buyers capitalising on opportunities for strategic investments. With any investment, it is important to properly assess the level of tax risk that a target investment entity presents.

When it comes to M&A transactions, obtaining a truly clear exit is often a lot harder than it seems.