Pitcher Partners latest Deal Pulse report on Queensland merger and acquisition (M&A) activity for the first half of the calendar year 2023 reveals an optimistic outlook.
Queensland M&A has remained remarkably robust with only slight reductions in deal volumes and values compared to the same time last year. Relative to deeper national and global reductions, this result again reflects the resilience of the sunshine state:
- Volumes – 117 deals (down 8% on the three year average of 127 deals); and
- Values – $8.3bn (compared to $10.3bn average across 2014-2022).
A number of sectors hit especially hard during the pandemic have seen a reassuring bounce back, including leisure, with the hotels, resorts and cruise lines sub sectors seeing a total of 11 deals this period.
Other key sector trends include:
- Energy, mining and utilities – 21 transactions which effectively reverses the more recent trend of contraction in this sector.
- Transportation saw no deals disclosed across the first half of 2023, after the above average 7 deals in 2022.
- Also in comparative decline is the consumer sector, with the 11 disclosed deals down 41% on the 3-year average of 19 deals.
- Construction – we again saw transaction volumes of 9, similar to 2022 and above the long-term average.
Whilst dealmakers appear to be taking a more considered approach with deals taking slightly longer to finalise, we are seeing a sense of general positivity and an uplift as the state’s market moves into the second half of the year. As we level out after some turbulent periods, let’s hope this strategic step change supports the market foundation for a strong future.
If you’re interested in knowing more about M&A or our observations on the drivers of divestment and acquisition in your sector, contact one of our experts.