The number of mergers and acquisitions (M&A) nearly doubled last year, with the trend set to continue into this year.
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There were 125 deals done last year and MinterEllisonRuddWatts expected another big year for M&A activity, whether or not New Zealand's borders open to visitors as planned.
The law firm's latest report indicates technology, financial services and healthcare sectors were still running hot, with food and beverage expected to play a key role in future acquisitions.
"With demand and supply on the increase, we are expecting another large year for M&A," corporate partner and private equity expert Neil Millar said, adding local and global market factors were driving the flood of M&A activity.
"The extraordinary financial stimulus worldwide has boosted the global economy, creating a massive pool of capital looking for a home," he said, noting that many of the domestic deals have exceeded $100 million.
"International buyers are experiencing fierce global competition for assets and that is prompting them to look further afield for opportunities."
A large number of investors were already in New Zealand to hunt out deals, but the number was expected to grow when international border restrictions eased, although Millar said investors were prepared to complete deals completely online.
"The arrival of these large investors has created another exit option for the (relatively) mid-sized New Zealand and Australian private equity firms seeking to divest investments held here in New Zealand.
"We are also seeing many local private business owners deciding that now is the time to sell. They've seen large, high-profile, privately held companies come to market and achieve great outcomes, and they are keen to follow suit.
