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Year in Review PKF Corporate Finance: Financial Year 2026

CF YIR Hero
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PKF Corporate Finance is pleased to present our Year in Review report for FY26. This document provides a snapshot of Australian M&A activity as a whole and also analyses key assignments that PKF have advised on.
 

This overview covers:

CF YIR 26 1

Trends and highlights – overall Australian M&A activity

M&A activity in Australia declined during FY26, with announced deal volumes down approximately 20% and aggregate announced deal value down approximately 53% compared to FY25. The weaker deal environment was driven by persistent macroeconomic headwinds and geopolitical uncertainty, which impacted business confidence, transaction execution, and investor appetite for large-scale acquisitions.

CF YIR 26 2

Market pulse: FY26 deal making trends

1. Succession-driven deal flow

Ageing business owners are increasingly exiting through M&A rather than passing businesses on, making succession one of the clearest deal drivers in the mid-market segment this financial year.

2. Sector-led regional activity

Sydney and Melbourne markets remain driven by technology, B2B services, financial services and healthcare; Brisbane by TMT, property and leisure; Perth by resources, critical minerals, mining services, industrials and energy transition.

3. Strategic scarcity driving sector focus

Buyers are increasingly pursuing assets with strategic scarcity. Resources, energy transition, industrials, infrastructure, technology, financial services and healthcare continue to attract the strongest demand. Valuations are being supported by defensible cash flows, capability and scale rather than market multiples alone.

4. Capital markets are reopening gradually

Listing activity and follow-on capital raising have picked up after a quieter period, suggesting renewed investor confidence, though selectivity remains high. Investors continue to favour issuers with clear earnings visibility and credible growth stories over speculative raises.

5. Where capital is going: infrastructure, energy & technology

Capital is gravitating toward infrastructure, energy transition and technology-enabled growth. Strong demand remains for AI and data-centre infrastructure, renewables, critical minerals and healthcare platforms, with funding tied to credible execution and cash generation.

6. Higher bar for private equity

PE activity has recovered, but conviction thresholds are higher. Firms are targeting scalable platforms, add-ons, bolt-on and take-private opportunities while avoiding businesses with earnings volatility or unresolved diligence risks.

7. Capability-led M&A for strategics

Corporates and strategics are using M&A to acquire capability as much as scale. Portfolio reshaping, adjacent-market expansion and cross-border opportunities remain key themes, with buyers willing to pay premiums where synergies and strategic rationale are clear.

8. Regulatory change is reshaping deal timing

New ACCC merger clearance requirements have pushed dealmakers to plan further ahead, with many transactions structured or timed around the new mandatory notification and review process.

9. Expanded and extended due diligence

Diligence is broader, deeper and commencing earlier. Key focus areas include earnings quality, working capital, customer concentration, management depth, succession, cyber risk, tax and ESG. Increasingly, diligence is being used to price risk and accelerate post-deal integration. 

10. Deal timelines are stretching across every stage

From initial onboarding and buyer or investor identification through to due diligence and regulatory compliance, each phase is taking longer than before, extending the overall path from deal origination to completion.

PKF – snapshot of activity
CF YIR 26 3
PKF select mandates in FY26
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CF YIR 26 5

Contact us

Should you wish to learn more about the contents of this review or to discuss future opportunities, please contact the relevant persons listed below:

Steven Perri 001 WEB 900x1200

Steven Perri

Partner

Melbourne

Stefan Galbo

Stefan Galbo

Partner

Melbourne

Shaun Monahan

Shaun Monahan

Director

Melbourne

Matt Hall

Matthew Hall

Executive Director

Perth

Andrew Beattie

Andrew Beattie

Director

Newcastle, Sydney, Port Stephens

Ian Douglas

Ian Douglas

Executive Director

Sydney

Alan Stevenson

Alan Stevenson

Executive Director

Sydney, Newcastle

Greg Grant Smith

Greg Grant-Smith

Executive Director

Sydney, Newcastle

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