HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 49
AUSTRALASIA STRONG RUN CONTINUES FOR AUSSIE DEAL-MAKERS
In Q3 2021, a total of 108 deals were successfully completed with a combined value of USD 7.9bn, representing a significant increase in both deal volume (54%) and disclosed deal value (61%) compared to Q3 2020. Overall deal value increased as a result of large deals such as GIC Private, Partners Group and Salter Brothers’ acquisition of Tucker Box’s 11Travelodge Hotels for USD 457m. Large deals of this type resulted in a 4% increase in average transaction values, rising fromUSD 70m inQ3 2020 to USD 73m inQ3 2021. Of the top 20 deals, 11 involved overseas bidders. For BDOAustralia’s national M&A team, the growth inQ3 2021 represented a continuation of the success enjoyed in the 2020-2021 financial year. In 2020-2021, the team completed 11 deals valued at more than USD 300m. This is partly due to significant investment in the size of BDO’s national specialist M&A teamover the last two years. The team’s deep experience in the mid- market is best evidenced by the wide range of clients it has supported. The USD 19m sale of Vortiv’s cybersecurity business to the BGHCapital-backed CyberCX is a prime example – with a Perth-based vendor, a Melbourne-based buyer and business assets in Sydney, BDOwas able to
provide experienced, dedicated M&A partners in each city to support every aspect of the transaction. COVID-19 pandemic protocols meant that this was an entirely online transaction and negotiation process, and BDO leveraged cross-office cooperation to bring the deal to a successful conclusion and deliver excellent client outcomes throughout. BDO’s strong performance was also attributable to the global appeal ofWestern Australia’s strengthening resources sector. For example, BDO’s significant M&A presence in Perth is unmatched by any of its national counterparts. Throughout the 2020-2021 financial year, the Perth M&A team has won and completed high-profile deals including the USD 106m sale of GoWest Tours to SealinkTravel Group and the USD 60m sale of McKay Drilling toTSX-listed Major Drilling International. The team leveraged the firm’s global network to create connections with potential acquirers. These landmark deals to publicly- listed companies highlight the range of skills the M&A advisory team possess in deal origination, negotiation and completion.
BIG PICTURE
• In Q3 2021, deal volume increased by 54% and deal value by 61% compared to Q3 2020, with average deal value increasing 4% fromUSD 70m to USD 73m • PE deal volume rose from 12 in Q3 2020 to 14 in Q3 2021, with average deal value dropping fromUSD 148m to USD 110m. PE’s overall contribution to total deal volume and value fell to 13% and 19.4% respectively from 17.1% and 36.2%. This is suggestive of lower growth in both PE deal value and volumes for trade sales, which could be reflective of a very active public market • With a combined 108 transactions, the most active sectors were TMT (30), Business Services (15), Industrials & Chemicals (14), Financial Services (12) and Energy, Mining & Utilities (11).
PE/TRADE VOLUME &VALUE
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