Average M&A deal size triples to $150m
There has been a “significant increase” in average merger and acquisition (M&A) deal size in the first quarter of 2022, according to HLB Mann Judd.
In the latest quarterly M&A review from the firm, it said there had been a “significant increase” in average deal value.
In Q1 FY21, the average deal size was $42 million but in Q1 FY22, this had more than tripled to $150 million.
This was attributed to an “increasing number of deals with transaction values over $100 million”.
The largest deal was in the financials space and worth $3.7 billion which was Milton Corporation being acquired by Washington H. Soul Pattinson and Company. The second and third-largest deals were in the industrials and materials space at $2.6 billion and $1.8 billion respectively.
There were 324 deals completed in Q1 FY22 compared to 291 in Q1 FY21, an increase of 11%.
The most popular sectors for M&A activity by volume of deals were materials, real estate and information technology while the largest deals were in the industrials and financial sectors.
In the 2021 financial year, there were 1,207 deals completed with an average transaction value of $113.2 million.
Transactions by sectors in Q1 FY22
Source: HLB Mann Judd
AUTHOR
Laura Dew
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
