Australian M&A activity Q4 2020

The fourth quarter of FY2020 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 the 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 Q4 FY2020, there were 176 deals completed compared to 263 in Q4 FY2019, a decrease of 33%. The average deal size decreased from $138.6 million in Q4 FY2019 to $93.9 million in Q4 FY2020. In our analysis we have excluded transactions with a gross transaction value greater than $5 billion.

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