Key points
- ACCC reforms are reshaping deals, not stopping them
- Regulatory change has become the top challenge, but other headwinds have eased
- The merger reforms need fine-tuning, particularly to protect smaller transactions
Two key pinch points keep corporate dealmakers awake at night – costs and time.
And this was the feared impact of the ACCC merger reforms that came into effect on January 1. There was an expectation that the M&A market, which had been humming along nicely during 2025, would hit the brakes.
Additional costs were expected to reshape how buyers evaluate potential acquisitions, particularly for smaller businesses, starting with a $56,000 fee due just with the notification of a proposed acquisition.
ACCC scrutiny was also likely to lengthen completion timelines, an unwelcome addition on top of the ever-increasing time commitment dedicated to due diligence.
The latest Pitcher Partners Dealmakers 2026 Outlook survey revealed that regulatory change had surged to the top challenge for mid-market dealmakers according to 45% of respondents, up from 32% a year earlier.
But there was also a couple of surprising survey results.
About 58% of respondents say the impact of the ACCC reforms will be to increase dealmaking, not force it lower. In addition, 71% of respondents say they intend to increase mid-market M&A in the year ahead.
So how can we explain those sentiments?
It’s clear that dealmakers are not treating the ACCC reforms as a stop sign, but more a signal to proceed with caution. And in the current market, that’s all that was needed to keep the M&A wheels moving.
There is now an element of understanding a known process rather than waiting to see how it will play out, and that is coupled with the market reality that the key drivers of deals last year have not dried up.
Succession planning remains a leading force for deals, while private equity firms are starting to offload assets and rationalise holdings, which creates buying opportunities.
Despite geopolitical uncertainty and the evolving regulatory environment, the Dealmakers 2026 Outlook survey suggests decision-makers are increasingly readying themselves to respond quickly to investment prospects.
Volatility may be reshaping how companies approach growth, given the survey found 85% of respondents described the rationale behind recent Australian investments as opportunistic. Just 10% of respondents indicated strategic acquisitions were in their plans, down from 40% last year.
Mid-market businesses continue to be a preferred entry point for corporate deal activity in Australia, particularly for overseas buyers seeking expansion and value creation.
While deal drivers remain, other challenges have fallen away. Access to finance or capital was now a top challenge for just 13% of respondents, down from 37% in 2025, and there was also reduced anxiety about markets (18%, down from 37%).
The upshot is the new ACCC reforms are seen as a factor that shapes how deals get done, not whether they get done.
Now, the current market sentiments should not take away from the fact that the reform rules need to be tweaked, particularly to avoid smaller transactions being swept up in the reforms.
About two-thirds of respondents believe at least minor adjustments are needed so that deals are not driven off a road using a map that wasn’t designed with them in mind.
Two areas cited as the most urgent to refine are stronger powers for the ACCC in the acquisitions of digital platforms, and an enhanced assessment of foreign investment implications, while more than 88% of respondents agree that a review of the new rules should consider outcomes for regional and rural communities.
But broadly, sentiment remains upbeat and the market is strong enough to absorb the reforms, even with different priorities and longer preparation.
Mid-market buyers are adapting to the new settings, retaining a positive outlook on the market while keeping one eye on the opportunities that volatility brings.
Expect timetables to be extended and the ACCC workstreams to be built into diligence for acquisitions that trigger notification thresholds, which will be most of them.
In some cases, the rules may be inconvenient and expensive, but for now they have been interpreted as manageable, and with a confidence among dealmakers, they are sensing opportunities to make a deal.
The winners will be those that plan early, and with some sensible fine-tuning to allay the regulatory concerns, the road to maintaining competition safeguards while still supporting a healthy pipeline of investment.
