Our team have crunched the numbers from 417 recent private & public transactions and published their results in a comprehensive 20 page survey. We’re delighted to share the results via a download, and we can post you a hard copy or two.
For those of you wanting bite sizes pieces, here are our key findings:
- There was a moderate increase in overall volume and value of Australian company acquisitions in 2016. Discounting the potential global ripple effect of a Trump-induced downturn, this growth is anticipated to continue in 2017.
- Acquisitive growth will become more common as more baby boomer owners seek to exit. Technology, low interest rates, increased competition and globalisation will also increase opportunity, particularly for strategic acquisitions and private equity.
- Food and beverage, technology and healthcare are anticipated to be the most rapidly growing acquisition spaces in 2017.
- In 2016, the highest number of deals occurred in the consumer discretionary and industrial sectors. These sectors in total account for just under half of all mid-market transactions.
- Of all acquisitions of Australian mid-sized companies, 25% originated overseas. The USA and Canada accounting for 38% of those acquisitions, followed by Europe with 30%.
- Almost 10% of acquisitions made by Australian companies were of overseas entities. Of those acquisitions, around 36% were USA or Canadian owned entities, and another 33% were European.
- The most common stated rationales for acquisitions are product expansion /diversification (50%), geographic expansion (19%)and economies of scale (17%).
- 10% of these transactions reported some form of earnout where the terms of the sale included a specified, performance based deferred payment.