Market Insights Financial Corporate Finance

Mergers and Acquisitions - Australia

Australia

The transaction value in the Mergers and Acquisitions market is projected to reach €70.59bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -0.21% resulting in a projected total amount of €70.44bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to €81.22m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (€1,260.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in Australia is experiencing a significant uptrend in activity.

Customer preferences: Companies in Australia are increasingly looking to expand their market share and diversify their offerings through strategic acquisitions. This trend is driven by a desire to enhance competitiveness, access new technologies, and gain entry into emerging markets.

Trends in the market: One prominent trend in the Australian M&A market is the rise of cross-border acquisitions. Australian companies are seeking opportunities overseas to broaden their global footprint and tap into new customer bases. Additionally, there is a growing interest in acquisitions within the technology and healthcare sectors, reflecting the importance of innovation and healthcare services in today's economy.

Local special circumstances: Australia's stable political environment and well-developed legal framework make it an attractive destination for M&A activity. The country's strong regulatory environment provides a level of certainty and security for both domestic and foreign investors, fostering confidence in deal-making processes.

Underlying macroeconomic factors: The robust economic growth in Australia, coupled with low interest rates, is creating a favorable environment for M&A transactions. Companies are capitalizing on the economic stability and favorable financing conditions to pursue strategic acquisitions that can drive growth and increase market share. Additionally, the country's proximity to the Asia-Pacific region positions it as a strategic hub for companies looking to access the rapidly growing markets in the region.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.