2020 was a challenging year for the Australian M&A market, with a fall in activity in the middle of the year due to COVID-19. However, as economic confidence returned, a number of previously aborted deals were revived and new transactions were brought to the table.
The number of distressed transactions last year was also lower than many commentators were expecting, owing to (among other things) the insolvency moratorium, government stimulus and low interest rates, as well as the resilience and relative strength of the Australian economy.
While there are still elevated levels of uncertainty, some sectors are faring very well. We have seen a higher proportion of deals in the technology sector, with the consumer, healthcare, industrials and services sectors also performing well. Capital raisings and public company work are also on the upward trend, with valuations finishing strongly.
In 2021, our national M&A team predicts the following key trends:
The team explains each of these trends in further details and provides a snapshot of key deals across a variety of industries in their latest M&A Review. To read the full report, please click here.
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.