Riding the M&A recovery: How dealmakers can seize opportunity in FY26

Ansarada’s Australia and New Zealand FY25 Deal Indicators report features leading legal voices commenting on regulatory, cross-border and sectoral M&A trends, as well as real-time insights from thousands of live transactions across ANZ.

Used by more than 860,000 dealmakers across the globe, Ansarada provides AI-powered virtual data rooms and dealmaking tools built for M&A lawyers, firms and corporate teams, bringing clarity, certainty and order to the deal lifecycle.

While deal activity and transactions fluctuated throughout FY25, data has shown strong growth in comparison to FY24. Deal indicators from the Ansarada Deals Platform also point to signs of recovery, with a 43 per cent rise in the number of open buy-side deals in the June quarter alone.

However, there remains ongoing challenges in the market which have impacted deal volumes, particularly within the regulatory environment.

“The Australian Competition and Consumer Commission (ACCC) is implementing a more rigorous merger approval regime, which is expected to introduce delays in deal completion. FIRB approvals are also taking longer than previously experienced, adding complexity to transaction timelines,” Ansarada managing director Justin Smith said.

“Looking ahead, several factors could continue shaping M&A activity in ANZ. The intersection of technological advancement, regulatory evolution, and economic conditions will determine the pace and scale of future transactions. While market optimism has returned and the growth trajectory remains positive, the quarterly fluctuations we’ve observed throughout FY25 demonstrates that the volatile global backdrop necessitates prudent approaches to capitalise on opportunities when favourable conditions arise.”

Across FY25, M&A activity was impacted by a lower number of large transactions, with deals predominantly occurring in the small to mid-market space, Piper Alderman partner Maria Capati noted in the report.

“I expect there to be continued volatility in the M&A market in FY26. Market consolidation will continue to be the main reason for any deal activity heading into the new financial year with smaller entities keen to exit certain industries that are highly regulated, but we will also see some large transactions occur in order for entities to streamline or divest non-core business functions, particularly as a result of the high cost of debt these entities are burdened with,” she said.

“I also predict that international purchasers will be active participants in any upcoming large M&A transactions.”

Post acquisition integration deals experienced the biggest drop compared to FY24 at 33 per cent, with investor reporting, IPO, raising a fund, and valuation/strategic review deals all experiencing a drop of 20 per cent or higher.

In the last quarter, communication deals surged by 400 per cent, despite a 6 per cent drop in year-over-year volume in FY24 and FY25. There have also been substantial declines in M&A activity within the consumer staples, energy, financials, and materials sectors.

Despite showing a modest decline of 10 per cent in the last quarter, the real estate sector remains stable overall, with a 6 per cent increase in year-over-year growth – something Clifford Chance partner David Clee noted would be likely to continue with renewed interest from foreign investors.

“Australia remains an attractive investment destination for foreign capital, and this is driving significant activity across the Australian M&A landscape. This activity is spurred by a confluence of economic, regulatory and strategic factors, and because Australia is seen as a safe haven during periods of geopolitical instability,” he said in the report.

“As we move through the second half of 2025, international dealmakers are increasingly targeting Australian assets, attracted by the country’s economic resilience, sectoral strengths, and evolving regulatory clarity.”

New merger reforms requiring mandatory reporting before acquisitions which meet certain thresholds can go ahead, which officially come into place from January 2026, is also already prompting dealmakers to engage earlier with advisers and resulting in more structured transaction planning.

Ansarada’s SaaS platform is customer-centric and simplifies document and transaction management, supporting the entire deal lifecycle – something particularly essential as moving forward, the market will reward increased preparedness and organisation.

“Looking to FY26, we expect the market to remain active but increasingly divided. The best assets will continue to command strong interest and pricing, while more marginal opportunities may struggle to find a home,” Kain Lawyers director and head of private M&A Gerry Cawson said in the report.

“For dealmakers, this environment rewards preparation, agility, and market experience. We’re optimistic about the year ahead – as confidence returns and capital remains available, we see FY26 as an opportunity-rich environment for those dealmakers ready to act.”

Evolving regulatory environments, sector specific growth, and market resilience are all key factors pointing to a more cautious approach. And in a market shaped by volatility and reform, early legal involvement and data-driven intelligence will be key to bringing order and confidence into FY26 dealmaking.

Download the full FY25 ANZ Deal Indicators report here to discover more insights and opportunities.