Australian M&A activity Q1 2021

The first quarter of FY2021 has seen a decrease in the number of transactions completed in Australia, and the average deal value has also decreased. We are only beginning to understand the impact that COVID-19 pandemic has on deal values. However, it is clear an appetite for investment remains. Coupled with low lending rates, the current business environment may provide valuable opportunities if vendor and acquirer value expectations can be aligned.

Based on the published transaction data for Q1 FY2021, there were 245 deals completed compared to 313 in Q1 FY2020, a decrease of 22%. In our analysis we have excluded transactions with a gross transaction value greater than $5 billion.

The average deal size decreased from $124.8 million in Q1 FY2020 to $41.1 million in Q1 FY2021 which can be attributed to drop in the number of transactions and average transaction size for transactions over $100m in FY2021 compared to FY2020

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