There has been a flurry of discussion recently around the softening of M&A deal volume toward the backend of 2022, with global economic climate cooling and rising interest rates seen as the main contributing factors. Some industries that have historically carried the weight of completed deals have subsided, while other sectors have surged ahead in their place, led by the renewable energy sector.
BDO Corporate Finance Partners in Perth, Todd Grover and Peter Toll, discuss the state of play for M&A with a more local lens.
“In Western Australia, the overall demand is holding firm. There’s strong appetite from buyers, and equally willing sellers…the financial performance of our client base remains strong”, said Mr Grover “We are seeing continued interest from trade buyers in Australia and from Europe”
“When looking at the private sector, M&A activity in this space is still active, as baby boomers continue to exit to trade or financial buyers in deference to family succession” Mr Toll explains.
“When it comes to listed M&A activity with subdued market prices, companies are seeing value at the current pricing and listed M&A activity has increased in recent months. Also given the current climate and the increased listed M&A activity, we are seeing those companies who consider themselves as potential targets, getting prepared ahead of time and are engaging us to prepare shadow expert reports, so they have a strong understanding of their value if a bid were to be received.”
Mr Toll highlights though, that IPO activity has cooled over the last six months. “However, we’re starting to see companies looking to undertake a public offering start to recommence listing activities, either before Christmas or early in the new year.”
BDO’s Perth office continues to grow with more than 50 Corporate Finance professionals in the team. For more information on M&A, our experience, people and recent deals transacted, click here
Mergers & Acquisitions
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