find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
Acquisition activity set to snowball

Acquisition activity set to snowball

Acquisition activity is set to increase as more Australian companies are now seeking to make acquisitions in the next six months, according to the latest bi-annual Capital Confidence Barometer…

Acquisition activity is set to increase as more Australian companies are now seeking to make acquisitions in the next six months, according to the latest bi-annual Capital Confidence Barometer released today by Ernst & Young.

The findings, based on a survey of more than 800 executives around the world, showed 45 per cent of Australasian respondents intend to transact in the next six months, up from 29 per cent six months ago.

Ernst & Young Oceania leader for transaction advisory services, Graeme Browning, said companies are cashed-up and looking to invest, following 12 to 18 months of preserving and raising capital.

"What we're already seeing is companies getting ready to transact," Browning said.

"Our transaction teams are busy and there is a lot of work in the system. Corporates are divesting non-core divisions and others are looking for the growth and synergies that bolt-on acquisitions bring," he said. "We are starting to do a lot more work around IPOs and private equity are cashed up and keen to get back in the game.

"I think over the course of the next couple of months we will see quite a lot happening. Once it begins, it will snowball. It is definitely building - you can feel a momentum that is very real."

According to Browning, coming out of the global financial crisis, a lot of companies are feeling a great need to be very disciplined and clear about their strategy is, in terms of what they represent, what markets they want to be in and what part of that market they want to be in.

A finding highlighted by Browning was that companies are now spending more time preparing for an acquisition. He said companies are looking at the risks, how to manage those risks, what synergies might be available and spending a lot more time at the pre-deal stage.

"Buyers are wanting to do more to understand acquisition synergies, as well as the risks. Planning for the post-deal integration is happening up-front, it's a very robust process.

"Then at the post-deal stage...they are wanting to put more effort into the implementation - the integration of the assets they've bought. So that's a more disciplined approach that will require different things from lawyers."

Other key Australasian figures in the Capital Confidence Barometer include:

  • Ninety-two per cent of Australasian companies are optimistic about the strength of market opportunities at home.
  • Eighty per cent view the future of their business as robust, with many reporting confidence in the effectiveness of their capital structures and an easing of liquidity restraints.
  • Forty-two per cent indicate their business has no difficulty obtaining access to finance, with the remaining 58 per cent believing access to finance will open within the next six months.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Acquisition activity set to snowball
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
Aug 17 2017
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
Aug 17 2017
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
Aug 17 2017
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...