Corporate finance
Year in review FY24
PKF corporate finance is pleased to present our year in review report for FY24. This document provides a snapshot of Australian M&A activity as a whole, and also analyses key assignments that PKF advised on.
This overview includes:
Trends and highlights – overall Australian M&A activity
An analysis of M&A activity in FY24 in Australia, including deal values, number of deals, and sector trends.
Snapshot of activity, key assignments, and case studies
Insights into and summary of key assignments completed by PKF during FY24 by line of service and client industry, including case studies.
Contacts
Contact details for our corporate finance teams should you wish to learn more about the contents of this report or to discuss future opportunities.
Trends and highlights – overall Australian M&A activity
The financial year ended 30 June 2024 (FY24) saw a decrease in the number of announced M&A transactions in Australia, down ~13% compared to FY23, while announced deal values decreased by ~36% from FY23. Nevertheless, sentiment towards the Australian M&A market remains cautiously positive, with respondents to a Mergermarket dealmakers survey giving Australia a 77% confidence score when rating the M&A environment*, based on factors including ease of doing deals and sourcing opportunities.
* Source: Mergermarket, Dealmakers Mid-market M&A in Australia, 2024 outlook report, February 2024
Snapshot of activity
217 MANDATES IN FY24
PKF corporate finance teams advised on 217 mandates in FY24 across our three core service lines: corporate advisory, transaction services, and valuations.
PKF key assignments in FY24
Case study
Bloom Equity Partners | RightCrowd
PKF provided transaction and advisory services to New York-based Bloom Equity Partners on the acquisition of RightCrowd’s Workforce Access Software business and Presence Control business via a carveout from Australian Stock Exchange listed RightCrowd Limited.
PKF services provided:
- Transaction support services
- Financial due diligence
- Taxation due diligence
PKF global offices involved:
- Australia
- USA
- Canada
- Philippines
- Belgium
Objectives
- Minimise financial and taxation risks through targeted due diligence procedures
- Minimise value leakage via purchase price completion adjustment mechanisms
- Provide clarity regarding working capital requirements and cash burn
- Advise on deal structure to achieve optimal tax position
Challenges
- Australian corporations legislation and listing exchange regulations
- Navigating global taxation regulations
- ‘Carve out’ transaction structure of several business units
Solutions
- Red flags report to identify key financial, taxation and transaction risks to be focused on during a full due diligence phase
- Helped craft alternative deal structure to mitigate tax risks identified
- Advised on purchase price completion mechanisms to provide clarity on key items that impacted purchase price
- Provided specific indirect taxation guidance regarding significant R&D government grant income
Case study
BudgetNet | nib
BudgetNet | nib
PKF provided lead advisory services in relation to the sale to nib.
BudgetNet Plan Management
- PKF advised the owners of National Disability Insurance Scheme (NDIS) plan manager BudgetNet Plan Management Pty Ltd on the sale of their BudgetNet business to nib holdings Limited.
- BudgetNet is the sixth plan manager to join nib Thrive’s house of brands in less than 12 months after nib raised $158.1 million in equity in 2022 to enter the NDIS sector.
- BudgetNet is a Melton, Victoria-based provider of participant-focused plan management support to more than 5,000 participants.
Contact us - your PKF team
Should you wish to learn more about the contents of this review or to discuss future opportunities, please contact the relevant persons listed below:
