Mid-market M&A advisors tip stronger 2024 as buyer-seller price gap closes
Some of the factors that have hurt dealmaking this year, such as a gap between buyers and sellers on price and acquisition financing delays, could abate in 2024.
Australia's small to mid-market M&A advisors are hopeful that the valuation gap between buyers and sellers that has plagued deals this year could close in 2024, even if the economy worsens.
Despite a spate of late dealmaking activity at the top end of town end the year, 2023 was a quiet year for M&A deals. The mid-market sector was no exception with the average deal size over the last 12 months decreasing by 14.8% to $27.1 million, according to audit, tax and advisory firm Nexia's recent recent research.
And Brent Goldman, a corporate advisory partner at the firm said activity could pick up in 2024, even if interest rates rise.
“If interest rates go up and companies feel a bit more pressure, it may trigger an alignment of value between buyers and sellers and that might create more activity,” he said.
