Dealtracker 2017

Australian M&A and IPO Market Insights

This fifth edition of Dealtracker pulls together Australian M&A, private equity and IPO transactions for the 18-month period to 30 June 2017 to provide an insightful snapshot of the trends experienced within the domestic market.

Our analysis captured more than 1,270 M&A and private equity transactions featuring an Australian business as the target. Overall, deal activity remained strong, supported by high deal volume throughout CY2016 from both domestic and international buyers. Australian sellers experienced a significant uplift in valuation as determined by a Dealtracker record high median EBITDA multiple, with notable outperformance in the utilities, telecommunication and information technology sectors.

The improved market conditions were attributable to multiple factors, including the relative economic and political stability of Australia in relation to foreign economies, the continuing growth of Australia's reputation as an international technology hub, the changing preference of international buyers for premium Australia-made goods driven by the fast-growing middle class across Asia ,and low growth alternatives in the Northern Hemisphere.

Initial Public Offerings over this 18-month period slowed in comparison to the high level of activity observed in CY2015, alongside a significant decline in the value of proceeds raised.

Regardless if your intention is to sell in the short-term, or it forms part of your long-term plan, you can do a lot now to ensure an optimal outcome for the future of your organisation. Likewise, should your organisation be seeking growth through acquisitions, proper planning and a thorough understanding of deal dynamics applicable to the relevant sector remain key.

Take a look at our latest report on the evolving Australian M&A landscape for insight into the value drivers for current investors.