Corporate Partner, James Hawes, says: "This year's survey represents a welcome vote of confidence from international investors and bodes well for a continued pick up in M&A activity in New Zealand. 

“It has been a tough year for our local economy with GDP contracting and inflation staying high, but the 2025 outlook appears rosier: the flat local economy has created favourable investment conditions, meaning we’re expecting to see a return to growth. 

“Notwithstanding recent global economic and geopolitical challenges, survey findings tell us that Aotearoa/ NZ maintains its global reputation as an open, politically stable, and legally robust member of the Asia-Pacific group,” says James. 

A measured investment pipeline focusing on business fundamentals

James says the survey findings are consistent with a more optimistic mood in the M&A market over the past few months, as investors look for good value acquisition targets. 

“We’re seeing a trend away from more opportunistic, short-term acquisitions toward a more measured pipeline. 

“It appears as though offshore purchasers are looking to acquire New Zealand businesses, not only for their relatively modest valuations, but also for the opportunities for market acquisition and inorganic growth which they represent,” says James. 

Factoring in ESG 

ESG factors are still considered important to investors as part of their overall investment strategy, but have slipped as a top priority from 42% in 2022 to 36% last year and 30% this year. 

James says: “Once the market conditions begin to stabilise, we expect ESG considerations will once again receive greater focus from buyers. 
“Notwithstanding its slippage in terms of importance in investment strategy, ESG factors are still central to M&A decision-making, with 99% of respondents rating ESG as important when considering deals. 
“ESG is not just a checkbox exercise. With the growth in global ESG regulation, investors are increasingly aware of the importance of managing ESG risk if they want sustainable growth in their acquisition targets,” says James. 

Local IP attractive to investors 

IP Partner, Richard Watts, says: “Intellectual property portfolios can be a key driver of value in business acquisitions, and we’re seeing buyers become increasingly sophisticated in assessing the quality of IP assets in potential acquisitions. 

“We’ve seen a lot of interest in IP in the biotech / pharma space, with a sharp increase in clinical trials and development. This, combined with a very active and mobile development of IT - both in the broader health sector, as well as in areas like transport and business services - has meant that investment in IP in New Zealand remains strong. 

“Technology is also one of New Zealand’s largest export sectors and is continuing to grow, so it is perhaps no surprise that the sector remains of serious interest to potential investors,” says Richard.