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Australia

SMEs spearhead resilient Australian M&A activity amid cautious markets.

Our 2025 Dealmaking Insights Report highlights mergers and acquisitions (M&A), Initial Public Offerings (IPOs), Private Equity (PE), and Venture Capital (VC) activity in Australia throughout 2024. By analysing trends from the past year and decade, we explore the effects of challenges such as high interest rates, geopolitical uncertainty and competition from alternative funding options that affect dealmaking activity.

This year we found that:

  • The Australian M&A landscape shows resilience, particularly in the SME sector, with 73% of transactions valued under $50 million as businesses favour strategic, manageable investments.
  • Private Equity investments are increasingly targeting the Industrials and TMT sectors, focusing on infrastructure and scalable technologies.
  • The current deal-making environment is marked by caution and longer closing times due to increased due diligence, while the IPO market has slowed as firms delay public offerings amidst market volatility.

Outlook

As businesses navigate this dynamic landscape, they must remain agile and informed, leveraging insights and strategic foresight to capitalise on emerging opportunities.

Key findings

73%

of Australian M&A deals valued below $50 million.

7.4% YoY

 increase in M&A transaction value, rising to $94.1 billion, up from $87.6 billion.

149

venture capital deals,
the lowest in 8 years.

1,081

M&A deals in Australia, the lowest since 2015.

27

IPOs, the lowest in a decade, but total value, up 288% to $3.2 billion.

19.4%

increase in value of PE deals, despite a 23% decline in deal volume.

Tips from our experts

— Ensure your business is ‘sale ready’ at any time.

— Ensure you understand the ‘value’ of your business – both fair market value and ‘strategic’ value.

— Engage with an advisor to get honest feedback on what your exit options are and who potential buyers are.

Mark Calvetti, Partner, Corporate Finance

— Review the structure of your business from the start to avoid complex tax, commercial and legal issues later.

— Maximise government grants like the R&D tax incentive and Industry Growth Program to inject cash without diluting shareholders.

— Use employee share schemes to align employees’ interests with the business without depleting cash reserves.

Jack Qi , Partner, Corporate Finance

— Be prepared by understanding your strategy and having your financials, legal structure and management team in order.

— Prioritise and set aside time for deal activities over regular business operations.

— Seek advice from trusted advisors throughout the deal process.

Ben Trengove, Partner, Business Advisory

— Perform tax due diligence when buying a business to identify key tax issues and risks

— Plan for the tax outcome of transactions early to achieve the best tax results

— Prepare for ATO reviews of significant transactions to ensure smooth dealings in the future.

Jon Larossa, Partner, Tax

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