Australian M&A outlook 2023

ReportData Insight 16 February

Australian M&A outlook 2023

Despite challenging conditions, international dealmakers remain upbeat about Australia’s overall deal prospects and mid-market opportunities in the year ahead

Mergermarket is pleased to present Dealmakers: Australia mid-market M&A outlook 2023, published in association with Pitcher Partners.

While the Australian M&A market closed out 2022 far from the lofty heights of 2021, this downtrend has hardly put a dent in positive sentiment among dealmakers – and, overall, respondents interviewed in this research give Australia a 75% confidence score when rating the current environment for M&A.

Indeed, in the minds of those undertaking M&A, Australia remains a core strategic market. More dealmakers are looking here for deals than anywhere else in Asia-Pacific – and most think Australian businesses and target assets are unchallenged as value prospects. This is particularly true of the mid-market, where many will be focusing their investments.

This report explores recent trends in Australian M&A while providing a view of the opportunities and challenges facing investors in 2023.

Key highlights include:

  • M&A deals are down: Deal values dropped 52%, falling to AU$140bn from the heights of AU$289bn in 2021; M&A volume likewise declined, although far less pronounced than value terms with only 5% fewer deals in 2022.
  • Strong sentiment: 56% think M&A conditions will get better in 2023 – and another 60% intend to put optimism into action by increasing investments into Australia over the next 12 months.
  • The mid-market opportunity: 95% say Australia’s mid-market opportunities are better or at least equal to those found in global markets.
  • Strategic drivers: 72% say their Australia deals are being done in response to rising macro challenges – and this is likely to continue through 2023 as a way to pivot and prepare their businesses for future volatility.
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