Dealmakers: Mid-market M&A in Australia 1H22 market update

ReportData Insight 18 August

Dealmakers: Mid-market M&A in Australia 1H22 market update

Following 18 months of relentless dealmaking, investor euphoria appears to be tapering off – however, while the M&A boom may be over, the market has hardly gone bust. Dealmakers aren’t throwing on the brakes full stop – many may just be taking more time to do deals and engaging in M&A that more closely aligns with strategic objectives.

This overall slower deal process means many deals may be pushed into 2H22. The engine of M&A may be strongest in Australia’s mid-market (deals valued between AU$10m and AU$250m), where growing appetite for deals among domestic and international buyers will continue to drive M&A forward.

This market update looks at M&A activity over the past six months and provides insights into the trends and challenges shaping the deal landscape in the months ahead.

Key highlights include:

  • M&A snapshot: Deal volume is down 29% in 1H22 (359 deals) compared to 1H21 (503 deals), however, total M&A value is up 6% in that same time period, hitting AU$88.3bn.
  • Mid-market: Deals valued between AU$10m and AU$250m accounted for a third of all deals (34%), compared to 23% prior to the pandemic.
  • Mega deals: Large cap transactions helped drive deal value, particularly the sale of Ramsay Health Care to a consortium led by KKR for AU$28bn.
  • Inbound interest: Overall inbound M&A accounted for almost 40% of total deals in Australia, and one of the highest valued first halves in the past five years.
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