M&A Review 2026: Market insights and outlook for 2027

Australia’s mergers and acquisitions (M&A) market showed considerable resilience throughout FY2025-26 despite ongoing geopolitical uncertainty, fluctuating capital markets and a cautious financing environment. Quality assets continued to attract strong investor interest and well-prepared businesses remained highly sought after.

While market participants remained selective, high-quality opportunities continued to attract strong competition and capital. Looking ahead to FY2026-27, the Australian M&A market remains well positioned for continued activity, supported by available capital, strategic corporate demand and ongoing interest from domestic and international investors.

Drawing on transactions advised on by Holding Redlich's Corporate Transactions team over the past year, together with broader market developments influencing Australian dealmaking, we outline several key trends across the Australian M&A market.

Trends that shaped Australia's M&A market

Several key trends shaped the Australian market over the past year:

• middle-market activity remained steady, driven by strategic acquisitions, succession planning,
  industry consolidation and portfolio repositioning
• private capital continued to shape dealmaking, with an increase in secondary buyouts, recapitalisations
  and founder liquidity events
• strong foreign investor interest, particularly in healthcare, technology, energy and other growth
  sectors
• industry consolidation accelerated across fragmented sectors, as businesses responded to
  competitive pressures and sought operational synergies.
• regulatory complexity increasingly influenced transaction planning, particularly in relation to
  competition law, foreign investment and transaction execution.

These trends demonstrate that businesses continue to pursue strategic transactions despite broader economic and geopolitical challenges, with capital remaining available for quality assets and growth opportunities.

The continued strength of middle-market activity, private capital investment and cross-border interest highlights the underlying confidence investors have in quality Australian businesses. At the same time, increasing regulatory complexity has reinforced the importance of careful transaction planning and execution.

What will continue to drive M&A activity in Australia?

Several factors are expected to support transaction activity in Australia in the year ahead:

• strategic acquisitions - businesses and portfolio companies continue to pursue acquisitions as a means of achieving growth, scale and new capabilities.
• private capital deployment - sponsors remain active, pursuing secondary buyouts, recapitalisations
  and founder liquidity events as they seek opportunities to deploy available capital
• cross-border investment - investors from North America, Europe and Asia continue to target Australian businesses, particularly those operating in growth sectors
• available capital - significant levels of uninvested capital remain available, particularly for businesses with strong recurring revenue, scalable operating models and clear growth pathways
• succession planning and ownership transitions - business owners are considering succession and ownership transition strategies, creating opportunities for both exit and growth transactions
• energy transition and digital transformation - the transition to renewable energy and continued investment in technology and AI-enabled businesses are creating investment opportunities across a range of sectors.

Outlook for 2027

Australia remains an attractive investment destination, supported by its strong regulatory framework, skilled workforce and exposure to long-term structural growth sectors.

Looking ahead, the outlook for Australia's M&A market remains positive. While buyers are likely to remain disciplined, demand for quality assets and businesses with clear growth potential remains strong.

For businesses considering a transaction, preparation will be key. Those that understand the regulatory environment, address potential issues early and approach the process with a clear strategy are likely to be best placed to capitalise on emerging opportunities.

In addition to these broader market trends, our M&A Review 2026 covers sector-specific opportunities in renewable energy, real estate, financial services and healthcare, as well as the latest regulatory developments affecting transactions in Australia. For our full analysis, read or download Holding Redlich's M&A Review 2026.

If you would like to discuss a potential transaction, please get in touch with our team.

Published by:

Darren Pereira

William Kontaxis

William Khong, Jeanne Vallade, Ben Constance, Andrew Stone, Dhanushka Jayawardena

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