While deal volume overall has dropped and the average deal value has halved, Since mid-year 2020, we saw a return to pre pandemic levels of deal-making tempo as markets stabilised following the initial ‘pause’ in transactions during distressing COVID-19 uncertainty.

While the challenges presented by COVID-19 have shaken up many industries and businesses, it has also created many unusual and unique opportunities in the market. The future of M&A going into 2021 is bright and filled with surprising optimism as collectively the world looks forward to an effective vaccine roll-out. The low cost of debt will fuel demand for M&A and as markets stabilise from the health consequences of the pandemic, fortune is likely to favour the brave.

“Australia has been fortunate to largely escape the worst health outcomes experienced by the rest of the world. And by comparison, with the support of Government fiscal and monetary stimulus, the Australian economy is well positioned to rebound stronger than most other economies. We expect this will be reflected in Australian M&A deal volume.”

– Brad Higgs, Partner

Whilst the markets heal, here are a few key actions to keep you and your business focused on your growth or recovery:

  • Understand the actual impacts of COVID-19 – is the short-term impact lower than expected?
  • Focus on the recovery (FY21 & FY22) results;
  • Renegotiate property leases while landlords are under pressure from threatened vacancies;
  • Understand permanent changes to the workforce;
  • Lock-in & support key customers; and
  • Hold tight on multiples they will recover in 2021!

Keep in mind that it takes 6+ months on average to close most transactions once you decide to sell. Knowing that there will be important preparation involved to get your business to be ‘investment ready’, it’s important for you to be prepared and start seeding your opportunity early.

“A defined plan with specific actions in the lead up to sale will lessen time required by management during the sale process.”

– Hal Pritchard, Senior Advisor

Evaluate your growth opportunities in 2021 with Titan Partners, experts in mid-market M&A corporate advisory with a free confidential conversation today.