Our latest insights

M&A deal volumes are down, but industry deal composition suggests Australia’s M&A landscape has largely stabilised. IMs led the charge by deploying long-held capital, while IPOs are subdued – likely into the future. Industrials continues to be the sector driving activity, and SMEs again remain some of the most sought-after targets for acquisition.

On 10 October 2024 the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024 (the Bill) was tabled in the Australian Parliament in an effort to overhaul Australia’s mergers and acquisition laws. The bill was passed by both houses of Parliament on 28 November 2024.

Merger & Acquisition (M&A) and equity market activity in the Agribusiness, Food & Beverage (Ag, F&B) sector is undergoing a strategic shift, as investors have become more selective and increasingly cautious in response to global economic uncertainty.

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.

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.

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.

Despite numerous lockdowns throughout the COVID-19 pandemic, the essential nature of the Agribusiness, Food & Beverage sector has seen diversification and growth opportunities for many of the market participants.

Brand Brisbane is rising, boosted by the publicity of their upcoming host gig for the 2032 Olympics and Paralympic Games.

We have released the seventh edition of Dealtracker, our analysis of the Australian M&A and equity markets. Covering transactions during the 18 month period from1 January 2019 to 30 June 2020, we saw a significant decrease in deals in H1 2020 as the world responded to the COVID-19 pandemic.