Making mergers work in the treasury

There are a few reasons why Australia is a popular target for acquisitions. The country is politically and economically stable, its companies are well-managed and many of them are involved in the mining sector, providing buyers with access to much-sought-after metals and minerals. Another benefit of purchasing an Australian business – though not one that usually makes the headlines – is that, with a free-floating currency, it is easy to sweep cash out of local subsidiaries to be used in other parts of the world. These factors haven’t passed foreign buyers by, and while M&A volumes are certainly off their pre-crisis highs, the pipeline of deals remains robust. More than half of all transactions involve a foreign acquirer buying an Australian asset.