The Australian public mergers and acquisitions (M&A) market has experienced a significant resurgence over the past 12 months, recording the highest number of deals in over a decade.

According to Corrs Chambers Westgarth’s M&A 2025 Outlook report, this trend is expected to continue, with further activity and a greater variety of M&A transactions anticipated in the coming year.

Despite facing challenges such as inflationary pressures and a persistent pricing divide between buyers and sellers, the M&A market saw an unprecedented flurry of activity.

Sandy Mak, Head of Corporate at Corrs, expressed optimism about the market’s future, stating: “Last year saw much higher levels of activity in the public M&A market than we have experienced in a long time, and while the year ahead will have some challenges, we believe that these elevated activity levels will continue.”

The report highlights several key factors driving this growth, including available capital, a strong appetite for strategic growth in sectors such as technology, healthcare, and renewable energy, and the need to secure competitive advantages.

Mak also noted that despite macroeconomic headwinds, private equity activity is expected to ramp up in 2025, particularly in private M&A.

Corrs’ analysis revealed notable trends in the M&A landscape.

Adam Foreman, partner at Corrs, reported improvements in deal success rates and faster completion times, with timeframes shortened by almost 95 days compared to the previous year.

The energy and resources sector is expected to maintain its leading position in the Australian M&A landscape for the third consecutive year, while the tech sector is anticipated to remain one of the most active areas for M&A activity.

Interestingly, despite the record deal volume, the overall deal value dropped from approximately $78.2 billion to around $46.1 billion, with the average deal value decreasing from $1.4 billion to $782 million.

Foreign bidders dominated for the first time in over five years, accounting for 54 per cent of all bidders.

The report also noted an increase in hostile transactions, with approximately 22 per cent of deals involving hostile elements at some stage, up from 13 per cent in 2023.

Additionally, there was a rise in the strategic use of scrip or mixed consideration to win board engagement and shareholder approval.

As the M&A market continues to evolve, Corrs predicts that the coming year will present both challenges and opportunities.

With stable interest rates and a strong appetite for deal-making, the outlook for M&A activity in 2025 remains vibrant and dynamic.