GFC has significant impact on M&A activity in Australia in the 2009 financial year

Melbourne, Monday, December 7, 2009 – RSM Bird Cameron’s 2009 Business Acquisition and Impairment Review, released today, has found a significant decrease in Australian M&A activity during the 2009 financial year.

The review found the total cost of business acquisitions had reduced by more than 50 per cent, due to the impact of the global economic crisis.

The inaugural annual review analyses the financial statements of a diverse cross-section of 150 Australian listed companies to assess the financial reporting impact of acquisitions made by these companies during the 2008 and 2009 financial years.

The analysis is segmented into ASX 300 and non ASX 300 entities providing insight into the different acquisition strategies of large, medium and small companies.

“With the global credit crunch restricting the availability of debt and equity capital, particular emphasis has been placed on assessing the impact of credit rationing on the Australian M&A markets,” said Glyn Yates, principal corporate finance, RSM Bird Cameron.

“We have also analysed the impact of acquisitions made in a prior year, on current year financial performance. This is of particular interest given the high level of M&A activity and asset prices we saw at the peak of the market in the 2007 and 2008 financial years.”

The review also analyses the impact the introduction of AASB 3 Business Combinations has had on the financial statements of acquiring companies.

RSM Bird Cameron is one of Australia’s leading accounting, tax and consulting firms, servicing mid-sized companies in Australia.

RSM Bird Cameron has a dedicated corporate finance team specialising in mergers, acquisitions and business development; transaction support and due diligence; capital market support; financial model construction and review; litigation support and forensic investigation; and valuation and expert reports.

-ENDS-

To download a copy of RSM Bird Cameron’s 2009 Business Acquisition and Impairment Review, visit www.rsmi.com.au.

To receive a hard copy of RSM Bird Cameron’s 2009 Business Acquisition and Impairment Review, email sarah.foley@rsmi.com.au.

About RSM Bird Cameron
RSM Bird Cameron is the largest mid-tier accounting firm in Australia serving the middle market with technical and commercial expertise over the full range of specialist corporate and business advisory services including assurance and advisory, corporate finance, taxation consulting and turnaround and insolvency.

RSM Bird Cameron is a core member firm of RSM International, the seventh largest accounting and consulting organisation in the world.

Media Contact
Traci St Lawrence
Recognition PR
02 9252 2266
tsl@recognition.com.au

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