NZ continued to be attractive to international investors through 2024, after a "bumpy and grumpy" ride in 2023. File photo. Photo: 123rf
All signs point to a bumper year for merger and acquisition activity, with technology, forestry and agriculture, energy, healthcare, and financial services leading the way, according to a report by legal firm MinterEllisonRuddWatts.
The legal firm's M&A Forecast 2025 indicates New Zealand continued to be attractive to international investors through 2024 with 156 deals, following what it said was a "bumpy and grumpy" ride in 2023.
Firm corporate M&A partner Neill Millar said 2025 was off to a good start with many deals under discussion.
"Private equity remained active throughout the year, with notable investments by Five V's newly established New Zealand team, Pencarrow, and Direct Capital," he said.
"Despite this, many of our private equity clients expressed a lack of investment opportunities in the first half of the year.
"As we moved into the final quarter of 2024, the market warmed up significantly."
He said the government's recent corporate law reforms and overhaul of overseas investment laws were designed to reduce regulatory costs and promote certainty, making New Zealand a more attractive place to invest.
"We're already seeing a large pipeline of activity for 2025 and expect that to grow."
Based on traditional holding cycles of three to five years, Millar said there were at least 91 investments ripe for divestment by local and overseas private equity firms, which was an indication of the size of New Zealand's pipeline of investment opportunities.
He said the wild card was whether or not President Donald Trump would continue to be seen as "good for business" or drive more uncertainty.
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