Investor focus: Foreign buyers ramp up M&A

Inbound M&A reaches new heights as Australia experiences a surge in interest from offshore investors. Offshore buyers completed AU$48bn in overall inbound deals in 1H23, the highest half-year total over the past five years and 205% higher than 1H22 (AU$15.8bn).

This increase in value shows strong support for the Australian market driven by various factors, including Australia’s stable economy, strategic geographic location, attractive investment environment and abundant resources.

Within the mid-market space, inbound deals have likewise posted a positive uptrend, with both volume and value climbing their way out of pandemic lows. The AU$3.8bn was the highest value first half since 2018 and upward momentum could see volumes continue to rise through 2H23.

Overall foreign inbound values have been led predominantly by North American dealmakers, accounting for 77% of value and 38% of volume in 1H23. These investors are actively exploring opportunities in Australia’s rich tech, mining and resources, finance and healthcare spaces as they expand their global footprint and leverage the country’s robust market potential.

Asia-Pacific based buyers have led the charge within Australia’s mid-market, accounting for 44% (AU$1.7bn) of inbound values and 37% (17 deals) of inbound volumes, given the country’s proximity to key markets and its resource-rich industries.