DealmakersAustralian mid-market M&A
The Australian mid-year M&A landscape reveals a tale of two markets.
While the broader Australian M&A market surged 101% in deal value, at the halfway point of 2025 the mid-market segment faced headwinds.
This reflects a market where larger transactions are driving growth, while middle market participants navigate increasing complexities and regulatory uncertainty.
The looming ACCC regulatory changes are creating significant market dynamics, particularly for the cautious mid-market navigating the Federal election, global trade tensions and weakened sentiment, which has resulted in volume decline.
Despite persistent global upheaval, the increased IPO activity and cross-border interest from overseas buyers attracted to Australia’s stable market is evidence of underlying confidence. The market appears positioned for potential acceleration in the second half, driven by improved sentiment and reduced trade tensions.
Get the key H1 stats in our PDF version here.
Read on and revisit the full Dealmakers report from earlier in 2025.
Looking to 2025
While deal volumes remain below pre-pandemic activity, these lower levels signal a maturing market where quality is paramount. Dealmakers are playing it smarter, betting on fewer but larger and more impactful deals.
The Australian market, known for its stability and strategic opportunities, is drawing interest from those ready to think big. As the market evolves, several key themes are emerging that will transform how deals get done:
- Selective investment strategies: Dealmakers are becoming more discerning, prioritising quality over quantity.
- Market maturation: Australia’s M&A market has reached a stage of greater sophistication, and so deals are becoming more intricate, requiring enhanced due diligence, innovative structuring and deeper industry expertise.
- Economic uncertainty: Global economic conditions are influencing M&A activity. These factors are causing dealmakers to approach transactions with heightened caution, as economic unpredictability and higher costs of capital pose challenges to valuations, financing and long-term performance projections.
Key sectors and deal drivers
Spotlight on sectors
Respondents reflect on which sectors will be hotspots for mid-market M&A, and which may experience distress in 2025.
Leadership transitions driving deals
Generational leadership transitions are poised to be a game changer in the mid-market across 2025.
Mid-market businesses, which form the engine room of Australia’s economy, often have long-standing family or founder-led leadership structures. With many of these leaders approaching retirement, the urgency to develop and execute succession plans has intensified.
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