ISSUE 1 | 2022
52
AUSTRALASIA HEAT CHART BY SECTOR
TMT
96 20% 66 14% 59 12% 59 12% 52 11% 50 10% 47 10%
Energy, Mining & Utilities
Consumer
Industrials & Chemicals
LOOKING AHEAD
Pharma, Medical & Biotech
of Chinese investment into Australia unfolds following a tumultuous year of relations in 2021. Our analysis indicates that the most active sectors for M&A activity will be TMT and Energy, Mining, & Utilities, with 96 and 66 transactions under consideration respectively. These sectors are closely followed by Consumer and Industrials & Chemicals, each with 59 deals in the pipeline.
Business Services Financial Services
The year ahead looks set to be another strong year for M&A activity, with 479 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 give cause for caution for overseas investors who must work through the FIRB approval process, wishing to avoid their acquisition to become politicised. It will be interesting to see how the level
Leisure
42
9%
Real Estate
8 2%
TOTAL
479
AUSTRALASIA MID-MARKET VOLUMES BY SECTOR
2020
2021
59
97
DANIEL MARTIN PARTNER
17 6
daniel.martin@bdo.co.nz
16
30
34
43
ANDREW BEAGLEY PARTNER
34
45
28
andrew.beagley@bdo.co.nz
47
48
47
33
35
57
55
Technology & Media
Financial Services
Energy, Mining & Utilities
Pharma, Medical & Biotech Real Estate
Consumer
Business Services
Leisure
Industrials & Chemicals
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