Corporate merger and acquisition activity will be strong this year after the pipeline was virtually closed off in March 2020 as the country went into its first pandemic lockdown. MinsterEllison also forecast that investment bankers would now turn their minds to filling merger and acquisition pipelines after largely completing the emergency capital raisings of last year. Millar said he also expected acquisition and divestment activity from private equity funds with 74 New Zealand businesses held for three years or more - the typical investment cycle for these funds. "Our domestic private equity clients are seeing the fruits of their largely conservative investment approach, with the majority of their investments weathering the storm in pretty good shape. But they warned that not all conditions would be conducive to mergers and acquisition activity with an increased focus on due diligence expected - adding cost and slowing deals.

Source: New Zealand Herald January 27, 2021 16:52 UTC