We already have the data on M&A transactions for the first quarter of 2020, and, of course, the stats from 2019. That’s quite enough for us to gain some predictions for this year, so we’re sharing our thought with you.
2020 will be a busy year for Australian M&A
We can expect the quantity of big public and private deals to rise this year. Looking back at the statistics, we can see that the value of deals was growing steadily over the last several years. In 2017 the value of public deals was $23.4, and in 2019 it went up to $45.9. That’s why we are so sure that 2020 will be a very busy year for Australian companies in terms of M&A.
The political environment will be auspicious
In few last years, the political situation in Australia and the world, in general, wasn’t too favorable for M&A markets. It took away the crucial feature any decision-maker needs to have – their confidence. However, considering the latest events – Brexit, the trade progress between the US and China, the election in Australia – we can assume that the environment will change for the better.
Key active sectors
In 2020 we expect many Australian fields to be active in terms of M&A. But some of them should have more of your attention – Energy, Infrastructure, and Mining. These sectors will experience the extraordinary activity as a range of players show interest in them. Also, the gold area most likely will be the primary focus in 2020.
The quantity of distressed M&A deals will grow
In 2020 the Australian market will quite likely experience many distressed M&A deals. This kind of transaction is rather complex as it has many technical rules. And the companies that can navigate through the maze of these rules will be able to enhance their value with transactions.