We are still seeing strong M&A activity levels in Australia, although transaction timeframes seem to have pushed out a little. This report predicts Australian M&A levels will remain steady in 2015 (in value terms) and then activity levels will build to a peak in 2018, suggesting positive conditions will be ongoing for several years. Particular sectors we are seeing attract high interest include healthcare, food and agri, technology and financial services.
Law firm Baker & McKenzie commissioned Oxford Economics to undertake one of few quantitative assessments of the global deal landscape that also predicts activity across completed mergers and acquisitions (M&A) and initial public offerings (IPOs) through until the end of 2020. The report uses modelling techniques relating to historic changes in transaction flows and draws on structural and cyclical transaction drivers including national income growth, equity prices and interest rates.Forecasts in the report have Australia's M&A annual completed deal value, including domestic and inbound transactions, edging up to $US74.1 billion ($96.1 billion) in 2015 from $US73.7 billion a year earlier. Activity is estimated to peak at $US126.3 billion in 2018, before slowing in the next two years.