2020 Year in Review – a Pandemic, a Trade-War, and All-Time Highs

28.1.2021

Financial Markets Overview

2020 proved to be a year of challenges (to say the least!!!). COVID, drought & bushfires, trade wars and Australia’s first economic recession in 29 years – 2020 had it all.

The March Quarter was the most volatile trading period in history, with financial markets reaching all-time highs in February 2020 before falling by over 40% with some of the biggest daily losses in history. The market rallied in the following Quarters as market sentiment strengthened, lifted by historically low interest rates and trillions of dollars in global government stimulus. At the close of the calendar year the All-Country World Index had risen 14.3%, although the ASX200 closed down 1.5%.

M&A Environment

As businesses looked to consolidate and strengthen balance sheets in March, M&A markets came to a grinding halt. However, investor sentiment quickly rebounded as the RBA slashed the cash rate to 0.1% and the Federal Government delivered $213 billion in stimulus packages.

Global M&A activity for the year fell to US$377 billion in the March quarter from US$800 billion in the previous quarter. This rebounded to over US$1,200 billion in the December Quarter, the highest transaction value Quarter since the Global Financial Crisis.

Against this backdrop of volatility, InterFinancial acted as lead advisor on eight transactions across 2020. All but one of these closed during COVID, and six closed in the second half of the year.

Outlook for 2021

2021 has started with a bang, with no signs of M&A activity slowing down. Low interest rates, a new boss in the White House, and the hope of COVID vaccinations easing travel restrictions are all fuelling investor confidence.

We wish all of our clients and colleagues a prosperous year, and look forward to announcing more successful transactions in the coming months.

InterFinancial’s Transactions – 2020 in Review

01.6.2021

InterFinancial helps LGIAsuper deliver Suncorp acquisition and member value

InterFinancial has advised LGIAsuper on its successful bid and agreement to acquire Suncorp’s superannuation business, Suncorp Portfolio Services Limited (SPSL). The acquisition, announced in April 2021, makes history, being the first Australian profit-for-members super fund to acquire a retail super fund. LGIAsuper members will benefit from increased size, scale and, ultimately, reduced costs with the […]

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24.5.2021

Sector Dashboards May 2021

Our monthly dashboards cover seven key sectors of focus, with each sector built up by several subsectors that cover similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the Australian Stock Exchange that are actively traded and covered by research analysts, and hence have […]

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20.5.2021

InterFinancial advised Mipac on its 100% sale to GR Engineering

Founded in 1997, Mipac Holdings Pty Ltd has operated for nearly 25 years on projects in Australia and internationally. Mipac employs 85 employees across its offices and project site locations. The business is headquartered in Brisbane and has a satellite office in Vancouver. Mipac has a proven business model and long term relationships with tier […]

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19.4.2021

Sector Dashboards April 2021

Our monthly dashboards cover seven key sectors of focus, with each sector built up by several subsectors that cover similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the Australian Stock Exchange that are actively traded and covered by research analysts, and hence have […]

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19.4.2021

The M&E in M&A

There has been a strong start to 2021 in Australian M&A with $7.5 billion in reported transactions. With increasing activity in the market, InterFinancial is regularly asked by clients what their business is worth. In the world of M&A, a commonly used valuation method is the ‘Capitalisation of Earnings’ or ‘Earnings multiple’ method. While industry […]

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31.3.2021

Sector Dashboards March 2021

Our monthly dashboards cover seven key sectors of focus, with each sector built up by several subsectors that cover similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the Australian Stock Exchange that are actively traded and covered by research analysts, and hence have […]

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31.3.2021

Strategic Planning Tips For Successful Acquisitions

Australian M&A activity is on the rise, with $8 billion in transactions closed so far this calendar year, up 30% year-on-year.1 Both financial and strategic investors are taking advantage of cheap debt and strong economic tailwinds to identify value adding acquisitions. Of course, identifying acquisitions and making them work are two very different things. A […]

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26.2.2021

Sector Dashboards February 2021

Our monthly dashboards cover seven key sectors of focus, with each sector built up by several subsectors that cover similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the Australian Stock Exchange that are actively traded and covered by research analysts, and hence have […]

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16.2.2021

IFL Ventures advises Frontline Accounting on its 80% sale to Sierra Madre

InterFinancial, through its IP focused division IFL Ventures, has advised business process outsourcing (BPO) company, Frontline Accounting on its 80% sale to the Philippines-based PE firm Sierra Madre. Frontline Accounting is a provider of offshore staffing solutions from the Philippines to accounting firms based in Australia, UK and USA. It experienced strong growth since its […]

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28.1.2021

2020 Year in Review – a Pandemic, a Trade-War, and All-Time Highs

Financial Markets Overview 2020 proved to be a year of challenges (to say the least!!!). COVID, drought & bushfires, trade wars and Australia’s first economic recession in 29 years – 2020 had it all. The March Quarter was the most volatile trading period in history, with financial markets reaching all-time highs in February 2020 before […]

Read more