Gareth Young features in KPMG’s report considering the driving factors behind record levels of M&A activity in Australia in 2018.
While the banking royal commission and an escalating trade war between the United States and China have hogged most of the business headlines, in this roundtable KPMG discussed how Australia’s business has quietly been enjoying boom deals. Mergers and acquisitions activity is at record levels with 17 of the nation’s 20 biggest companies on the ASX having completed some type of deal. According to KPMG’s Australia’s Evolving Deals Landscape survey, Australia experienced a record breaking year in the 2018 financial year with the highest number of M&A deals (598) on record worth $102.2 billion.
Discussing what has driven the growth at the recent Deal Market Outlook Roundtable, Gareth suggested the strength of the debt capital markets had played a big part in the year as there was now “clearly an availability of capital beyond the big four.”
Gareth suggested that partnerships within the private equity space come in many forms but more often they are about adding value to an entrepreneur’s business journey beyond the initial investment. He explained that a good partnership rested upon a cultural fit between the two parties and that a solid understanding of what a business actually does, beyond the private equity firm solely visiting a potential partner’s office, is vital.