The Australian M&A market resurged in 2021 with
record-breaking deal activity as investors turned their backs on
pandemic-induced economic uncertainty. With significant amounts of
deployable capital preserved as a result of cost-saving initiatives
during the height of COVID-19, this trend continued strongly
through the first half of 2022, but trailed off in Q3 as a result
of significant market disruptions, with the aggregate value of
global M&A deals in the second half of last year falling below
$1 trillion. By the end of 2022, the aggregate global value of
M&A transactions reached $3.6 trillion, down from the
record-breaking $5.9 trillion in 2021.
The Russian invasion of Ukraine, followed by swiftly imposed
sanctions and retaliatory diplomatic actions plunged many of
Australia's supply chains into disarray, and heralded a global
energy crisis that placed increased demand on Australian
commodities which consequently saw domestic gas and electricity
prices skyrocket.
