Forty-seven percent of respondents of KPMG’s Evolving Deals Landscape survey state that they expect a forthcoming boom in M&A activity over the next 12 months. A recent report by the Australian Financial Review, reveals the same outlook and activity hovering at seven-year high. At a roundtable co-hosted by KPMG and the Australian Financial Review (AFR), prominent business leaders discussed the deal market outlook and what’s in store for the upcoming year.
This AFR Special Report summarises a roundtable discussion exploring the changing structural dynamics of the market and how they impact deals and deal advisory across M&A and capital markets.
Big data streamlining due diligence process in M&A – Data digital tools are moving due diligence away from the process of just validating some basic numbers to a place where validation can move straight to the underlying analysis.
With Chinese investment, some sectors still in favour – While investment from China is being more regulated there has been an uptick into areas such as mining.
Moving beyond M&A: partnerships the way forward – With Australia's economy remaining relatively strong coupled with an infrastructure boom in a couple of states in particular, a lot of companies are looking beyond traditional mergers and acquisitions.
Debt funding to rise over the next year – Australian businesses are more willing than ever to look for debt funding over the next one to two years for a variety of reasons.
If assets can be done without, they are up for sale – Amid all the commentary around the 10-year anniversary of the GFC, and the hunt comparisons between then and now, one minor echo in today's market might have been missed. While the motivation is different, a rush of big companies are looking to offload non-core assets.
M&A activity at a record high and more to come – While the banking royal commission and an escalating trade war between the United States and China have dominated most of the business headlines, Australian business has quietly been enjoying a deals boom.
The panel included KPMG and key industry leaders:
Read the AFR Special Report on the deal market outlook.
Produced in association with the Australian Financial Review.
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