Dealmakers

Australian mid-market M&A

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.

Deal drivers: Succession planning takes centre stage 

Over the past year, succession planning has emerged as a critical driver of mid-market M&A in Australia, with 85% of dealmakers saying this is the top deal driver in 2025 – a striking increase from 37% in 2024. 

It highlights a growing awareness toward the need for well-orchestrated transitions in ownership within mid-market businesses. Likewise, 80% of respondents think that succession planning will lead to increased M&A activity – and 35% predict this growth to be significant. But are business owners ready to sell? Our respondents don’t think so, they identify nearly one in four sellers are unprepared – which can pose major challenges to a successful transition. 

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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.

Read more in our full report, available now.