Merger & Acquisition (M&A) and equity market activity in the Agribusiness, Food & Beverage (Ag, F&B) sector is undergoing a strategic shift, as investors have become more selective and increasingly cautious in response to global economic uncertainty.
The decline in deal volumes and average transaction values highlights an expanding focus on the mid-market segment, which in turn has driven a rise in transaction multiples. This shows a growing emphasis on high-potential, future-focused sectors that promise higher returns. Tech-enabled, innovative, ESG and sustainability focused businesses are attracting significant interest, especially as buyers take longer to finalise deals due to more thorough due diligence. However despite the slower pace, the outlook for long-term growth remains strong.
In contrast to the global downturn in IPOs, the Asia-Pacific region continues to show strength, accounting for 94% of global IPOs. However, no IPOs took place in Australia for the 18-month period ending June 2024, reflecting domestic uncertainty driven by inflation and interest rate concerns. While Australia's global ranking slipped slightly to sixth in deal volume, it remains a key market with approximately 5% of global deal volumes. Packaged foods continue to dominate, while distillers and vintners represent the next growth phase following the previous rise of independent brewers.
Looking ahead, the Ag, F&B sector’s investment landscape will be shaped by sustainability and innovation, with significant opportunities in areas like food manufacturing and waste reduction. As market volatility creates a challenging environment, businesses must remain agile, understand shifting dynamics and act on emerging trends. Navigating this carefully will be key to capturing value in a market that, despite uncertainty, holds great potential for those who can adapt.
Whether you're a buyer or a seller, we help you get market ready. From crafting deal strategies and negotiating terms to integrating or selling a business, we support you at all stages of the process. Contact us for an initial discussion tailored to your organisation.
