Louella specialises in large-scale public and private M&A transactions, disposals, joint ventures, partnerships, auction processes and restructures to Australian and international institutions. She has a depth of experience working on transactions for clients in the financial services and real estate industries. She is known for her pragmatic and commercial advice, impressive turnaround and accessibility to clients.
How would you characterise the current state of M&A in Australia?
There has been a general downward trend in global M&A across the market, particularly at the larger end of the deal spectrum. However, we are seeing momentum build in the pipeline, particularly in the mid-market and for certain sectors, but deals are taking longer to do, and they are more complicated. For a full return to transactional activity, we really need to see a stabilisation in interest rates.
What do you see as the major trends in M&A for the next few years?
For the next few years, I think we will see strong transactional activity in sectors somewhat immune to the current economic and political conditions. Those things will be driven by decarbonisation and the increase in the population.
Are there any trends particular to the healthcare sector?
The healthcare sector is a really exciting sector to watch and one where I think we will see a continued upswing in transactions. These things are driven by the ageing population, the increased use of tech and AI in the healthcare sector, and, of course, the real advancements in genomics and the use of IVF and fertility treatments. The advancement in genomics is a very exciting area to watch and will lead to transactional activity. It has the capacity to change the health landscape completely.
What proactive steps can sellers and buyers take to be well-prepared when M&A activity inevitably picks up again?
In this environment, you can be prepared for a certain upswing in transactional activity. What we are seeing at the moment is a prevalence of restructurings and refinancing.
Is ESG regulation in Australia fit for purpose?
Currently, in Australia, we have very limited ESG regulation. The regulation in Europe and particularly France is far more progressed – in some cases, they have some positive duties. In the next 12 months, I think we will see a real proliferation of regulation in Australia and into the coming years.
What should Australian companies be thinking of in terms of ESG when looking at transactions?
It’s really important to holistically consider ESG when looking at a transaction. You need to look at it through a risk management and a value capture lens. If you are just looking at it through risk management, you can really miss opportunities.
Which aspects of the competition approval process do you see as being ripe for reform?
The current competition regime is really ripe for reform, and you will see that the Chair of the Commission has proposed some changes. Some of those changes are administrative, but some will have substantive and significant effects.
What do you see as the potential challenges associated with such reforms?
One of the really unique changes proposed reverses the onus of proof. This means the transacting parties need to convince the Commission that the transaction doesn’t substantially lessen competition. This will change the engagement with the Regulator and the information provided to the Regulator.