HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 55
AUSTRALASIA HEAT CHART BY SECTOR
TMT
79 20% 62 15% 58 14% 49 12% 49 12% 44 11% 39 10% 18 4%
Industrials & Chemicals
Energy, Mining & Utilities
Consumer
Business Services
LOOKING AHEAD
Pharma, Medical & Biotech
The year ahead looks set to be another strong year for M&A activity, with 405 deals under consideration, which continues the significant levels of activity seen in 2021. While interest rates appear likely to increase, commentators generally expect that these will be small increases and not sufficient to dampen deal-making activity. High levels of dry powder from private equity and corporates seeking acquisitive growth rather than organic growth is expected to drive activity as buyer confidence remains high given the buoyant economy. ESG is likely to continue to be a growing factor in M&A investments, with reducing or offsetting carbon emissions a major factor. An election year in Australia, while not expected to reduce M&A activity, may create uncertainty for overseas investors who must undergo the FIRB approval process and wish to avoid their acquisition becoming politicised. It will be interesting to see how the level of Chinese investment into Australia unfolds following a tumultuous year of relations in 2021. Our analysis indicates that TMT is expected to remain the most active sector for M&A activity, with 79 deals in the pipeline. This sector is closely followed by Industrials & Chemicals and Energy, Mining & Utilities, with 62 and 58 transactions under consideration respectively.
Financial Services
Leisure
Real Estate
7
2%
TOTAL
405
AUSTRALASIA MID-MARKET VOLUMES BY SECTOR
2021
2022
110
30
16
33
4 1
44
6
53
5
48
7
8
58
5
37
13
61
Technology & Media
Financial Services
Energy, Mining & Utilities
Pharma, Medical & Biotech Real Estate
Consumer
Business Services
Leisure
Industrials & Chemicals
Australasia
Made with FlippingBook HTML5