For the Third Quarter of 2026

Note:

The data has been filtered to exclude: (i) real estate transactions; (ii) early stage venture capital transactions where size is stated or estimated to be less than $1.5m; (iii) transactions announced but yet to complete; (iv) liquidation sales; (v) other transactions where applicable.

_{Sources: Mergermarket, Capital IQ, Eikon, Pitchbook, PwC analysis (1 October 2026)}

With trade buyers continuing to account for a significant share of New Zealand M&A activity through the first three quarters of 2026, business owners need to think beyond ‘who could buy their business’ to ‘who has the strongest strategic reason to own it’.

That buyer may not be the most obvious competitor. Understanding where a business solves a problem that would otherwise take significant time or investment to address organically can broaden the potential buyer universe and change how the business should be positioned.

Why strategic buyers acquire

Strategic buyers acquire for many reasons, including customer access, market share, specialist capability, technology, geographic reach or a faster route into an adjacent market.

For international buyers, a New Zealand acquisition can provide an established market position or a platform for Australasian or wider regional growth. When it comes to companies repositioning their business, it can provide a quicker route into an adjacent market.

M&A is also part of a broader value creation strategy for some buyers. An acquisition can be part of a longer-term strategy, creating greater scale or diversification and strengthening the combined business for its next stage of growth.

Where an acquisition provides scarce capability, market access or innovation that would be difficult to replicate organically, its strategic value can extend beyond current earnings.

Look beyond today’s competitive landscape

Identifying strategic buyers requires understanding not only where companies compete today, but where they are trying to go next. This is why size is not always the most important filter. A relatively small business can have disproportionate strategic value if it provides scarce expertise, valuable relationships, technology, specialist capability or market access that would otherwise require significant time and investment to build.

Buyer mapping should be forward-looking. Changes in leadership, strategy, capital allocation, acquisition activity and capability gaps can signal where appetite may emerge.

Timing matters too. A buyer with a strong strategic rationale may be constrained by another transaction, internal priorities or funding. Conversely, a change in strategy, leadership or competitor activity can create acquisition appetite quickly. 

How strategic fit changes the value equation

Strategic buyers still start with the fundamentals. A compelling strategic rationale complements rather than replaces a credible standalone investment case.

The economics of owning the same business can look very different to different buyers. A useful question for owners is therefore:

Where strategic value is significant, one buyer may be able to justify a valuation that another cannot. But strong strategic fit does not automatically translate into a higher price. Buyers will naturally seek to retain as much of the value they expect to realise as possible.

For sellers, the opportunity is to identify buyers with different sources of strategic value and position the business around the potential value creation for each buyer. Bringing buyers with differing strategic rationales into a process can create competitive tension and help ensure that some of that value is reflected in the transaction outcome.

1. What is genuinely difficult to replicate?

Considering the customers, technology, intellectual property, licences, distribution, specialist expertise, people or market position – would another organisation need significant time or investment to recreate? 

2. What could the business achieve under the right ownership?

Consider what currently constrains growth.

Would access to a larger customer base, international markets, capital, technology, infrastructure, specialist expertise or distribution materially change what the business could achieve? This helps shift the discussion from standalone performance towards the opportunity created by combining two organisations.

3. Who has the strongest strategic reason to own it?

Look at potential buyers through their strategy, performance and capability gaps, not just their current market position. Consider who could create the most value from owning the business and why that opportunity matters now.

4. Can that value be demonstrated and delivered?

A strategic rationale needs evidence. Financial performance, retention, market opportunity, cross-sell potential and technology differentiation can build conviction. Owners should also understand what could affect delivery, including management retention, integration, customer or supplier conflicts and regulatory conditions.

5. How do you bring the right buyers to the table?

Effective buyer mapping needs to be both broad and forward-looking. It requires understanding potential acquirers' strategy, priorities, recent activity and capability gaps.

Process design is then critical. Bringing together buyers with different strategic rationales can create competitive tension and help test different views of value. Given their competing operational and strategic priorities, trade buyers frequently need more time (compared to private equity investors) to assess potential acquisition opportunities.

Price is only one part of the outcome. Internal approvals, funding, diligence requirements, regulatory conditions, transaction structure and certainty of execution all matter. Where potential buyers are competitors, commercially sensitive information also needs to be carefully managed through the process.

For owners, identifying the right buyer starts well before a sale process. It requires understanding what is genuinely difficult to replicate, where those attributes could create the greatest value under different ownership, and which organisations have a strategic reason to act. The broader and more forward-looking that analysis is, the greater the opportunity to create a competitive process around strategic value that delivers a superior transaction outcome.