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Average deal size in the first quarter of FY22 has risen from $42 million a year ago to $150 million, according to HLB Mann Judd, with the largest deal belonging to a financial firm.
Strong demand from clients wanting assistance navigating the COVID-19 pandemic has boosted revenue across the country’s largest accounting firms, with the ongoing shortage of professionals across the sector now the main constraint on the sector.
The nation’s Top 100 accounting firms are responding to the tight labour market conditions by raising pay and increasing bonuses – but it still isn’t enough.
The jump in assets raised was driven by the 13 large-cap firms which listed during the period compared to just one in the previous first half. There was a particular dominance by the materials sector which accounted for over half of all IPOs thanks to 26 small-cap listings and five large-cap ones which raised $648.8 million. Following materials, the best-represented sectors were banks, and healthcare equipment and services. Companies which met their subscription targets, some 87% of IPOs, tended to significantly outperform with those seeing full subscription recording an average of 25% in fir...
“The benefit there is you’re not limited by contribution limits, a family can loan money into the company and then have that company invest money from them and earn income on those investments. “It’s taxed at the company rate of 30%, rather than perhaps the top marginal tax rate if they were to invest that money in their own name. “That’s not as good as superannuation, which is why it should be part of the strategy and perhaps the major part of the strategy.” For that reason, Hutton said investment companies had come into play more often with discussions with wealthier clients.