M&A Review: Market insights and outlook for 2027

Australia’s mergers and acquisitions (M&A) market showed considerable resilience throughout FY2025-26 despite ongoing geopolitical uncertainty, fluctuating capital markets and a cautious financing environment. Quality assets continued to attract strong investor interest and well-prepared businesses remained highly sought after.

Based on the transactions our corporate transactions team advised on over the past year and broader market and regulatory developments influencing Australian dealmaking, we highlight key trends across the M&A market and what businesses and investors can expect in 2027.

Trends that shaped Australia’s M&A market

Several key trends shaped the Australian market during FY2025-26:

middle-market activity remained steady, driven by strategic acquisitions, succession planning, industry consolidation and portfolio repositioning
private capital continued to shape dealmaking, with an increase in secondary buyouts, recapitalisations and founder liquidity events
strong foreign investor interest, particularly in healthcare, technology, energy and other growth sectors
industry consolidation accelerated across fragmented sectors, as businesses responded to competitive pressures and sought operational synergies
regulatory complexity increasingly influenced transaction planning, particularly in relation to competition law, foreign investment and transaction execution.

These trends demonstrate that businesses continue to pursue strategic transactions despite broader economic and geopolitical challenges, with capital remaining available for quality assets and growth opportunities.

The continued strength of middle-market activity, private capital investment and cross-border interest highlights the underlying confidence investors have in quality Australian businesses. At the same time, increasing regulatory complexity has reinforced the importance of careful transaction planning and execution.

What will continue to drive M&A activity in Australia?

Several factors are expected to support transaction activity in Australia in the year ahead:

strategic acquisitions – businesses and portfolio companies continue to pursue acquisitions as a means of achieving growth, scale and new capabilities
private capital deployment – sponsors remain active, pursuing secondary buyouts, recapitalisations and founder liquidity events as they seek opportunities to deploy available capital
cross-border investment – investors from North America, Europe and Asia continue to target Australian businesses, particularly those operating in growth sectors
available capital – significant levels of uninvested capital remain available, particularly for businesses with strong recurring revenue, scalable operating models and clear growth pathways
succession planning and ownership transitions – business owners are considering succession and ownership transition strategies, creating opportunities for both exit and growth transactions
energy transition and digital transformation – the transition to renewable energy and continued investment in technology and AI-enabled businesses are creating investment opportunities across a range of sectors.

Outlook for 2027

Australia remains an attractive investment destination, supported by its strong regulatory framework, skilled workforce and exposure to long-term structural growth sectors. While buyers are likely to remain disciplined, available capital, strategic corporate demand and ongoing interest from domestic and international investors are expected to support continued M&A activity in the year ahead.

Businesses that prepare early, understand the regulatory environment and approach transactions with a clear strategy are likely to be best placed to capitalise on emerging opportunities.

We explore these trends in greater detail in our latest M&A Review, which also covers sector-specific opportunities in renewable energy, real estate, financial services and healthcare, along with recent regulatory developments affecting transactions in Australia. For our full analysis, download Holding Redlich’s 2026 M&A Review.

If you have any questions about our insights or would like to discuss a potential transaction, please get in touch with our corporate transactions team.

Disclaimer
The information in this article 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.

Published by:

Darren Pereira

William Kontaxis

William Khong, Jeanne Vallade, Ben Constance, Andrew Stone, Dhanushka Jayawardena