M&A Forecast 2023: Trending sectors

  • Publications and reports

    16 February 2023

M&A Forecast 2023: Trending sectors Desktop Image M&A Forecast 2023: Trending sectors Mobile Image

In our last M&A forecast we suggested the key sectors that would have an impact on M&A activity would be (among others) healthcare, financial services and technology. There has certainly been a lot of activity in these sectors and we continue to believe that they will be at the the forefront of deal-making in 2023.


A range of factors have contributed to high levels of activity in the healthcare sector during 2022 and they will be equally applicable in the coming year. These include:

  • higher demand for private healthcare due to an aging population and capacity constraints in the public system;
  • the availability of government funding for many healthcare services;
  • ‘roll up’ acquisitions making sense in the sector to achieve economies of scale and other benefits of consolidation;
  • and investments in healthcare businesses being consistent with many investors’ ESG policies.
Our recent work includes:
  • Acting for the shareholders of Hamilton Radiology Limited and Midland MRI Limited on the sale of all of the shares in each of those companies to I-MED.
  • Advising the partners of the Auckland Radiology Group (ARG) on the sale of the business and assets of their partnership, including the shares in Auckland Radiology Group Services Limited, to Infratil.
  • Acting for the shareholder radiologists of Bay Radiology Limited on the sale of 100% of their shares to RHC Bidco NZ Limited.
  • Acting for Dental Corporation Pty Limited, and its shareholder Bupa, on the sale of the Dental Corporation New Zealand Limited to Abano, owned by BGH Capital.
Financial services

There is ongoing regulatory change and pressure on the financial services sector, such as bank capital requirements and the conduct and culture review into domestic banks and life insurers. This will continue to drive M&A activity in the sector as businesses look to focus on their core offerings and to off-load non-core assets and businesses. Similarly, as with the healthcare sector, the highly regulated financial services sector provides an opportunity to consolidate businesses to achieve efficiencies and economies of scale.

Our recent work includes:
  • Advising Dai-ichi on its agreement to purchase Life Partners for NZD1 billion.
  • Advising Oriens Capital on its investment in PMG Group.
  • Advising Te Tai Ōhanga | The Treasury on the buy back of the shares in Kiwi Group Holdings Limited, Kiwibank’s parent company, from New Zealand Post, the NZ Superannuation Fund and ACC.
  • Acting for ANZ on its acquisition of data analytics business, Dot loves Data.
  • Acting for MMC on the sale of its investment administration services business to Apex Group Ltd.

Despite the uncertain economic conditions, New Zealand continues to generate plenty of innovative new technology businesses that have offshore expansion potential and are of interest to overseas venture capital investors. We have seen an emerging trend of overseas venture capital firms writing large cheques for high growth technology companies in New Zealand, including the recent capital raise for Soul Machines.

We believe that New Zealand’s growing profile, as a result of these kinds of deals, will lead to further similar investments in the year ahead.

We also see the technology sector benefiting from ongoing transition to a low carbon economy, which will lead to additional investment into technology businesses that support and accelerate decarbonisation. 

Our recent work includes:
  • Advising Soul Machines on its NZD100m plus million capital raise led by Japanese venture capital firm, SoftBank.
  • Advising Livestock Improvement Corporation on the divestment of its automation business to MSD Animal Health, including several ancillary transitional and long term agreements.
  • Advising Mercuria Asia Group on the acquisition of 20% of the shares of Chargenet NZ Limited.
  • Advising Advent Capital on its investment into access controls specialist, ICT.
  • Advising Francisco Partners backed Follett School Solutions on its acquisition of library software provider, AccessIT.