INTHEBLACK June 2026 - Magazine - Page 43
Global dealmaking surged
by 43 per cent in 2025, due
to a broad mix of large mergers
and acquisitions and a spike
in smaller transactions.
Asset valuation remains the
most common deal breaker,
but recent activity shows buyers
and sellers are finding it easier
to reach agreement.
A WAVE OF MEGADEALS ACROSS
the US, Europe and the Asia-Pacific region
saw global mergers and acquisitions activity
accelerate over the course of 2025.
While global deal volume was similar to
that of 2024, McKinsey & Company research
shows the overall value of announced merger
and acquisition (M&A) transactions rose by
43 per cent to US$4.7 trillion (A$6.7 trillion).
More than 60 of these deals were valued
above US$10 billion (A$13.97 billion).
Larger transactions accounted for the
bulk of Australian deal value. The largest
completed public transaction in 2025 was
the A$14 billion merger between diversified
investment group Washington H. Soul
Pattinson Company Limited and industrial
company Brickworks Limited, which ended
a longstanding cross-shareholding structure.
According to the March 2026
Pitcher Partners Dealmakers Mid-market
M&A in Australia report, 1132 deals were
completed across Australia last year, representing
an 8 per cent increase on the year before.
Total deal value jumped by 11 per cent to
A$143.7 billion.
MID-MARKET RESURGENCE
Of even greater significance to the broader
Australian market was the resurgence
of activity in the middle-market segment
covering deals valued
M&A opportunities are abundant,
however geopolitical and
economic conditions may make
deal execution more challenging
in some jurisdictions.
between A$10 million and A$250 million.
Australian mid-market volume rose 11 per
cent from 307 deals last year, while deal value
increased by 14 per cent to A$20.9 billion.
One of the largest mid-market deals
in 2025 was the A$233 million acquisition
of a 75 per cent stake in Versent Group,
Telstra’s technology consulting and
professional services arm, by India’s Infosys.
Stephen Craig CPA, a partner at Pitcher
Partners Melbourne, says the real story lies
in the mid-market, with the higher activity
in2025 marking the recovery from a negative
deals trend that began in 2022.
This points to a fundamental change
in sentiment toward the middle market,
Craig says, with 71 per cent of dealmakers
contributing to the firm’s research stating
they expect to increase investment in the
mid-market this year. A further 25 per cent
said they will at least keep their dealmaking
in Australia unchanged from 2025.
Valuation remains the most common
deal-breaker in Australian mid-market
M&A, the Pitcher Partner report notes.
However, Craig says buyers and sellers
are finding it easier to reach agreement
than in previous years.
“People want to do deals and are more
proactive in getting them done,” he says.
“So they are finding ways to agree on
a valuation or bridge any gaps.”
intheblack.cpaaustralia.com.au 43
