Australia 1H23 snapshot: The big picture

Overall M&A deal totals sink to five-year lows, although values remain robust, setting the stage for a promising second half of 2023.

Deal volumes dropped 26% from 1H22 while value rose 13% to hit AU$64.8bn, one of the highest first-half totals over the past five years. The lone exception was 1H21, although that period was marked by a rapid uptick in M&A as dealmakers went back to work following a tumultuous 2020 amid the onset of COVID.

The outlook for 2H23 looks promising, as dealmakers start to act on M&A sidelined in late 2022 and 1H23 as valuations begin to stabilise despite persistent uncertainties (inflation, geopolitics, rate increases).

Rising distressed opportunities could also factor into M&A in 2H23 and beyond. Insolvencies and restructuring situations will create more buying opportunities as underperforming businesses with heavy debt burdens are forced to reorganise and divest assets.