Australian M&A 1H21 update

28 July 2021

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Mergermarket is pleased to present Dealmakers: Mid-market M&A in Australia 1H21 market update, published in association with Pitcher Partners.
In Pitcher Partners’ annual Dealmakers report, 38% of respondents expected Australian M&A to return to pre-pandemic levels by the end of 1H21. Australia’s mid-market seems to be aligning with these expectations: values have recovered to pre-pandemic levels and volumes are only slightly behind, down 5% from 1H19, compared with 19% for the Australian M&A market as a whole. Promising pipelines and deal intentions suggest that the second half of 2021 could see further M&A as dealmakers look to the mid-market for opportunities.
This report dives into the trends and challenges shaping Australian M&A and the mid-market as dealmakers prepare for a promising second half of 2021.
Key highlights include:
  • Australian M&A: Deals were down 19% in 1H21 (447 deals) from 1H19 (551) as the market drives toward recovery – although values rocketed 270% in that same timeframe to reach AU$110.8bn
  • Domestic-driven recovery: 71% of deals were completed by domestic dealmakers in 1H21
  • Mid-market strength: Deals were down 5% in 1H21 (143 deals) from 1H19 (150), while values rose 11% to reach AU$8.7bn from 1H19 (AU$7.8bn)
  • Foreign inbound M&A: Despite border closures and limited inbound travel, foreign dealmakers still participated in 29% of deals in 1H21, and almost a quarter (23%) of deal dollars were from offshore buyers.