The latest report from Andrew Cassin of Aquisiti suggests that while buoyant economic conditions continuing to bolster the fortunes of SMEs, it is no surprise that M&A activity is remains high on the agenda among companies. Cassin says recent research indicates that M&A activity is up 33.1 per cent year-on-year (Merrill Corporation) in the APAC region, whilst local private equity is sitting on more than AU$7 billion in uninvested capital (“dry powder”) as at the start of FY19 (US$663 billion globally).
Closer to home, he says, acquisitions in the recruitment sector over the past 12 months have been headlined by ongoing foreign investment from Japan in particular, and he notes People Infrastructure has just this week announced the $8 million acquisition of Network Nursing to add to its cornerstone AWX and Edmen brands. “At Acquisiti, FY19 has had a strong start with completed transactions in the IT recruitment and office support/contact centre areas in July alone,” he says.
Cassin also highlights three examples of current opportunities for acquisition:
1. Office support/administration recruitment agency based in Sydney with >$500k EBITDA
2. NDIS provider and recruitment services into social, disability and community services based in NSW with >$2.3 million EBITDA
3. Office support/light industrial recruitment agency based in Auckland with >NZ$400k EBITDA