M&A Forecast 2020

What's ahead for merger and acquisition activity in New Zealand? MinterEllisonRuddWatts' Corporate team discusses trends and makes predictions for the year ahead.

M&A activity in New Zealand appears to be slowing down, in contrast to the surge at the end of 2018. Processes are taking longer to complete, and some deals are failing to transact. We predict slightly fewer deals coming to market in 2020. However, the prognosis isn’t all gloomy.

We predict that in 2020 there will be:

  • a settling of the market and further adjustment where deals are being perceived as expensive.
  • increased M&A activity in the financial services sector.
  • continued cooling for IPOs, particularly on the NZX.
  • greater divestment activity by private equity firms, with 56 investments ripe for sale (based on traditional holding cycles of three to five years).
  • the increased use of alternative funding structures as New Zealand’s banks respond to the new capital requirements.

Trending sectors for the year ahead:

  • Health and aged care
  • Financial services
  • Agriculture and forestry
  • Construction
  • Food and beverage
  • Software and technology

Read the Full Merger and Acquisition Forecast

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