Moore Australia’s FY25 M&A Report highlights steady deal momentum, with a move towards larger transactions, amid strong IT sector activity and valuations
Mid-market M&A volumes in APAC rose 3.9 percent in FY25, reaching a total of 10,074 transactions, according to new data released by Moore Australia. The report also recorded a 12.3 percent increase in median deal size, growing from A$22.3 million to A$25.0 million, despite prevailing macroeconomic uncertainty.
The FY25 APAC Mid-Market M&A Report analyses mergers, acquisitions, and related transactions under A$300 million across the region. The findings point to continued strategic deal-making, with buyers showing increased interest in scalable business models, recurring revenues and sector-specific synergies.
“We’re seeing capital deployed selectively and with sector precision,” said Jarron Puszet, Chair of Moore Australia’s Corporate Finance Committee. “Buyers are focusing on assets with synergies and scalability for long-term value creation, particularly in the logistics and software sectors which have seen valuation uplifts.”
Sector Movements: Buyers Gravitate Towards Specific Industries, Impacting Valuations
- IT accounted for 23 percent of total deal volume, the largest of any sector, with 80 percent of IT transactions involving software companies.
- Median EBITDA multiples in the IT sector increased from 12.6x to 16.1x, a 28 percent rise year-on-year amid strong investor competition for assets in the sector.
- Transportation deals saw the most significant uplift in valuations, with multiples doubling from 5.7x to 11.4x reflecting sector consolidation activity and material synergies.
- In contrast, leisure sector multiples fell from 13.6x to 6.7x, reflecting investor caution in discretionary industries.
- Private equity and venture capital firms remained active in technology-led M&A, comprising 40.1 percent of IT sector acquirers.
Domestic Activity Outpaces Cross-Border Investment
Domestic transactions accounted for nearly 80 percent of APAC deal volume, continuing a five-year trend of national consolidation. China and Japan together contributed 63 percent of total mid-market deals, with 88 percent of Chinese and 95 percent of Japanese transactions involving local counterparties.
Australia and India were the top destinations for inbound cross-border deals. Australia recorded 467 foreign-led acquisitions, a 4.7 percent increase on FY24, while India attracted 428, underscoring continued international interest in the region’s most open markets.
Moore Global Thrive Index Reinforces Sector Confidence in IT and Tech-Enabled Deals
Recent global research from Moore Global supports the trends identified in this report. The inaugural Moore Global Thrive Index, which surveyed mid-market businesses across 12 countries, reported an overall optimism score of +35.1, with 74 percent of respondents reporting improved performance year-on-year.
The IT sector scored highest on the index at +44.2, reflecting continued confidence in digital business models. This corresponds with APAC deal activity in FY25, where technology companies attracted premium valuations and led the region’s M&A volume.
The index also highlighted that technology investment remains the top strategic priority for business leaders, aligning with this report’s observations of sector-led capital deployment and private equity focus.
Real-World Application: Strategic Transaction in the Metals & Recycling Sector
Moore Australia advised on the sale of Highett Metal, a Victorian-based scrap metal business, to Minemet Recycling, a private equity-backed metal recycler with revenues exceeding A$100 million. The acquisition adds approximately A$21 million in revenue to Minemet and represents a strategic alignment within the circular economy and industrial materials sectors.
“This transaction demonstrates the role of tailored advisory in unlocking value through strategic fit,” added Puszet. “It also reflects the increasing attention being paid to sustainability-aligned sectors and long-term industrial transformation.”
