Australia’s M&A market continues to be subdued
The pandemic-induced boom of 2021, fueled by low-interest rates and government stimulus, gave way to a more subdued 2022 and 2023 as economic conditions tightened, a trend that has continued in 2024.
M&A Annual Report highlights
- 945 deals were completed in FY2024 (a decrease from 1140 in FY2023 and 1455 in FY2022)
- The average transaction size of $121m was up from $89m in the previous year
- The number of deals fell across all sectors
- The overall average multiple achieved for completed deals decreased from 10.3x in FY2023 to 9.3x in FY2024.
The outlook
While FY2025 presents a cautiously optimistic outlook with stabilising inflation and interest rates, challenges such as valuation gaps persist.
The market is gradually recovering, with increased deal activity in certain sectors, but remains sensitive to global economic and geopolitical uncertainties.
The focus remains on long-term value creation, with sectors like technology showing promise. Overall, there’s a growing appetite for deals, but the market is still navigating economic uncertainties and geopolitical risk.
With the Australian government’s commitment to achieving net-zero emissions by 2050, we foresee an increase in M&A activity within energy transition infrastructures, including the energy storage and distribution sectors.
"Despite current challenges, the Australian M&A market is poised for growth, driven by technological advancements, ESG considerations, and a growing appetite for strategic acquisitions. As the economic landscape evolves, businesses that can adapt and seize opportunities will thrive in this dynamic environment."
Assurance & Advisory Partner
Key findings
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About the M&A Annual Report
HLB Mann Judd Sydney’s annual M&A Report analyses deal volume, pricing and industry activity for the past financial year. The report particularly focuses on Australian deal activity in the small to medium-sized (SME) space. In addition to the analysis, the annual M&A Report shares insights from recent transactions that the firm has supported.
Data in the report is sourced from S&P Capital IQ and publicly available records.
About HLB Mann Judd Sydney
Mann Judd in Sydney was formed in 1970 and over the past five decades has grown to 31 partners and directors. Today the firm provides a comprehensive range of advisory and financial services to Corporate, Private or Family Business and Individual clients.
The Sydney firm is part of the HLB Mann Judd Australasian Association. HLB Mann Judd is an association of leading award-winning advisory and chartered firms. HLB Mann Judd has offices in most of the major business centres in Australia, New Zealand and Fiji. HLB Mann Judd is a member of HLB International, the global advisory and accounting network.