Expanding Horizons 2020 Offshore Perspectives on Investment Into New Zealand During the Covid-19 Recovery

Expanding Horizons 2020 Offshore perspectives on investment into New Zealand during the Covid-19 recovery

November 2020

In collaboration with

1 Contents

Key findings 3

Methodology 4

Introduction: Cautious optimism as investment fundamentals still solid 5

Section 1: Investor intentions and investmentfundamentals still positive 7

Section 2: New Zealand M&A – this is local private equity’s moment 10

Section 3: Re-opened border will accelerate New Zealand’s M&A market 12

Section 4: Tech, consumer and pharma sectors lead the way 14

Section 5: Overseas investment regime working, but still room for reform 16

Conclusion: Looking ahead 18

About Simpson Grierson and Contacts 19

2 Expanding Horizons 2020: Offshore perspectives on investment into New Zealand during the Covid-19 recovery Key findings 60% 8% 20% of investors surveyed of investors surveyed have of investors surveyed intend to invest in N in delayed NZ investments. say Covid-19 has the next two years. 2% have suspended/ increased their 29% are considering abandoned likelihood to invest inves�ng here in pre-Covid in N the next 12 months intended investments

60% 70% % of investors surveyed say a decline in deal value in decline in deal volume in par�al re-opening of NZ’s H1 2020 (US$1.2bn) H1 2020 (29 deals) compared borders would make them more compared to H1 2019 (30 deals) likely to invest. 7% say a full to H1 2019 border re-opening would (US$4.2bn) likewise en�ce them to invest

Inbound MA TMT in H1 2020 is NZ’s most a�rac�ve sector, % accounted for according to 71% of respondents. of investors surveyed think 96% of deal value Pharma, biotech and the NZ Government’s (US$1.19bn) and medical (60%), and policies are suppor�ve 69% of volume consumer (51%) towards foreign investment, (20 deals) are also hot sectors compared to 14% who view them as unsuppor�ve

3 Methodology

In August 2020, Simpson Grierson commissioned Acuris Studios, the publishing division of Acuris (which operates Mergermarket), to canvas the opinions of 35 foreign investors on the investment opportunities, trends and challenges in New Zealand – and how their investment intentions have been affected by Covid-19. Selected respondents were a cross-section of the investors who responded to the 2019 Expanding Horizons survey, and were evenly split between Asia-Pacific, North America and Europe. All respondents had completed at least one investment into NZ in the past five years. Within the graphed survey results, percentages may not sum to 100% due to rounding, or when respondents were allowed to choose more than one answer. All quoted data is propriety Mergermarket data unless otherwise stated. All deals are based on announced transactions.

How would you categorise your company? Where is your company based? 0 20 40 60 80 0 20 40 60 80 60% 40% 34% 34% 31%

Foreign corporation/MNC Foreign PE/VC ﬁrm Asia-Paciﬁc Europe North America

What was your company’s most recent annual revenue? 26% 9% 26% 9% 0% less than US$5 billion less than US$1 billion less than US$10 billion At least US$1 billion but billion US$1 least At but billion US$5 least At Less than US$499 million Greater than US$10 billion than Greater At least US$500 million but million US$500 least At

4 Expanding Horizons 2020: Offshore perspectives on investment into New Zealand during the Covid-19 recovery Introduction: Cautious optimism as investment fundamentals still solid

Welcome to the latest edition of ‘Expanding Horizons’, our report on offshore investment into New Zealand. Our 2019 report was a market first – providing an examination of overseas investment into Aotearoa New Zealand (NZ), from the investor point of view. It drew on feedback from foreign investors, representing both trade and private equity (PE) buyers, who had invested in NZ in the past five years. The results were encouraging. Respondents saw NZ as an attractive investment option and 77% expressed an intention to invest here over the following 18 months. The outlook for M&A investment into NZ looked good.

Then came Covid-19. How the crisis, and the NZ Government’s response, will Michael Pollard impact our economy is an important question with no clear answer just yet. Head of Corporate We wanted to know how Covid-19 has changed offshore investors’ plans Simpson Grierson to invest in NZ. So we specifically asked a cross-section of our 2019 survey respondents how the pandemic had changed their investment plans and sentiment towards the NZ market. The results tell a surprisingly positive tale for NZ inbound investment and we share respondents’ feedback in this report. Some key takeaways include: • Investors believe NZ’s investment fundamentals remain sound and 60% of respondents say they are considering investing here in the next 12-24 months. 20% of respondents say the pandemic will actually increase their likelihood to invest in NZ. • However, 48% of respondents are delaying investments here and 23% say their pre-Covid considerations have been suspended or abandoned. • Investors still need to visit our shores to kick the tyres on investments. Safely re-opening borders will help to accelerate NZ’s M&A market. In the interim, less competition from offshore PE and Multi-National Corporations (MNCs) gives local PE a golden opportunity. • The need for certainty (with markets returning to some sort of stasis and valuation expectations normalising) is a golden thread running through all responses. We are hopeful that NZ’s economic equilibrium will return soon, with offshore investors not far behind. Although, like the respondents, we recognise that risks remain. The country has proven its ability to control Covid-19 outbreaks, enabling the domestic economy to operate more or less normally. The big change will come when we are able to safely re-open our borders, either partially or fully. We hope you enjoy reading our report. Please get in touch with our contacts if you would like to discuss any of the findings in more detail.

5 6 Expanding Horizons 2020: Offshore perspectives on investment into New Zealand during the Covid-19 recovery Section 1: Investor intentions and investment fundamentals still positive

Covid-19 has delayed offshore investors’ M&A plans for NZ, but overall investor sentiment is positive and NZ investment fundamentals remain strong.

Covid has delayed and Not all bad news as generating increased demand for technology investment (see Section 4 denied deals 20% of respondents told us that on page 14). The ongoing economic impacts Covid-19 has actually increased their of Covid-19 have obviously affected likelihood to invest in NZ. respondents, with many saying they Several respondents highlighted “The global economic are delaying plans to invest in NZ. the speed at which NZ controlled conditions are posing 48% of respondents indicate that the spread of Covid-19, compared problems during decision- they are delaying investments, to other regions, and can see it and 23% told us their pre-Covid leading to a “first mover advantage”. making. We cannot considerations for investment in NZ However, most respondents cited determine the optimum have been suspended indefinitely the relative stability of our market value for targets, even if or abandoned. and good targets as key factors, they have incorporated saying that NZ’s general appeal Investors who have delayed plans as an investment destination is good digital standards in will be hoping the health crisis is more influential than the country’s under control soon. This would their operations.” effective Covid response. allow countries to re-open their Director Corporate Development, borders and for markets to return to The crisis has also opened up Australian corporation an equilibrium, so that pricing and opportunities for investors to valuation assessments can be made capitalise in certain sectors such as with a degree of confidence. pharma, medical and biotech, as well

Figure 1. Has the Covid-19 pandemic affected your investment intentions?

20% 34% 14% 23% 9% 0% e r u s n U No impact by over 1 year over by by 1-12 months by Yes – delayed considera�on – delayed Yes Yes – delayed considera�on – delayed Yes Yes – increased likelihood to invest to likelihood – increased Yes suspended indeﬁnitely or abandoned suspended indeﬁnitely Yes – pre-Covid considera�on has been considera�on – pre-Covid Yes

7 General investor sentiment is Investment fundamentals “The valuation, political and cautiously positive hold steady legal certainty are the main reasons for New Zealand being 60% of our 2020 survey respondents Respondent feedback shows that a good destination.” are considering, or open to the continued strength of basic – Director Finance, considering, investment in NZ within investment fundamentals is the key US-based corporation the next two years. driver for investors to invest into NZ. “The tax regime is favourable, as This is a similar percentage to The most attractive fundamentals compared to some other regions our 2019 survey, where 57% said for inbound investors include: less in Europe and [the] Americas. they planned to invest here within competition for targets, political/ There is support for foreign 24 months. regulatory stability, access to new/ investments, which is ideal for advanced tech, and generally fair 29% of this year’s respondents corporations and PE firms. The use valuations/good returns. indicated that they are considering of advanced technology and digital or would consider investing here While NZ’s Covid-19 response transformations is also appealing.” in the next 12 months (compared and relatively mild recession to – CFO, UK-based corporation to 13% in 2019). However, 37% say date have increased our appeal they will not consider investing in NZ as an investment destination for (compared to 3% in 2019). some respondents, only 29% identified NZ’s “decisive response to Covid-19” as one of our most attractive fundamentals.

Figure 2. Are you considering or would you consider M&A/investment in NZ?

2019 survey 13% 40% 20% 21% 3% 2020 survey 29% 31% 37% 3% Yes – within the next 1-12 months Yes – within the next 12-24 months

Yes – within the next 24-36 months No Unsure

“(NZ) is a good investment destination, because target capabilities have 6%achieved benchmark standards in recent times. The progress made by companies in various sectors will pay off because the recession is mild.” Managing Partner, Australian PE/VC firm

8 Expanding Horizons 2020: Offshore perspectives on investment into New Zealand during the Covid-19 recovery Figure 3. What makes NZ attractive as an investment destination?

2019 2020

Compe��ve environment 29% (rela�vely few 0% buyers/compe�tors) 0% Poli�cal/regulatory stability 7%

% New/advanced technology 7%

% Valua�ons/returns 7%

29% Legal certainty 7%

Decisive response 0% to Covid-19* 29%

Posi�ve economic outlook 9% (rela�ve to global condi�ons) 26%

Funding/investment 2% opportuni�es 2%

2% Deal sourcing opportuni�es 17%

18% Favourable tax regime 17%

* “Decisive response to Covid-19” not included in 2019 survey

9 Section 2: New Zealand M&A – this is local private equity’s moment

Deals are still happening, but border restrictions are limiting offshore buyers’ activity. So it’s local PE’s chance to shine with less competition from offshore PE and MNCs.

The ongoing economic impacts of Figure 4. New Zealand M&A trends Covid-19 have obviously affected respondents, with many saying they 80 5,000 are delaying plans to invest in NZ. 70 Deal volumes subdued but long- term rebound expected 4,000 60 Deals are still being done but volumes and values are subdued, Deal value US$m 50 as expected. For H1 2020 compared 3,000 with the same period in 2019: 40 • Volume down 3% (29 deals

Deal volume 2,000 vs 30) 30 • Value down 70% (US$1.2bn vs US$4.2bn) 20 1,000 Inbound M&A was a key feature of overall trends, accounting for 96% of 10 deal value (US$1.19bn) and 69% of volume (20 deals) in H1 2020. 0 0 H1 H2 H1 H2 H1 H2 H1 Most respondents expect the short 2017 2018 2019 2020 term outlook to remain subdued over the next 12 months: Inbound volume Domes�c volume

• 52% expect M&A to decline Inbound value US$m Domes�c value US$m • 20% expect it to remain at current lower levels travel restrictions that make advantage to NZ PE. Local funds can • 29% say it will increase, but deal-making more challenging for explore investment options within only moderately offshore investors. NZ freely, and take full advantage of an investment market with less Over 50% of respondents expect While relying on local trusted competition from offshore buyers. a rebound in the next 24 months advisers (such as lawyers and as markets stabilise and borders accountants) goes a long way, it is However, foreign investors are still eventually re-open. not always seen as the complete expected to be key players in the answer. Any investor – whether MNC market in the next 12-24 months. Private equity will have a free run or PE/VC – must still be confident 46% of respondents say foreign PE/VC investors are expected to that the investment ‘feels right’. PE/VC firms will increase activity drive M&A activity in the next 12-24 This means inspecting sites, being and 26% say foreign MNCs will months, with offshore corporates able to ‘look the vendor in the increase activity. much less likely to be driving deal- eye’, and personally negotiating making. NZ based funds will be significant deal points. the most active, leveraging local market knowledge and inbound Closed borders make this difficult for offshore investors and offer an

10 Expanding Horizons 2020: Offshore perspectives on investment into New Zealand during the Covid-19 recovery Figure 5. What do you expect to happen to overall M&A levels over the “Foreign PE firms may not be active following timeframes? in the next 12 months, but they will start investing once again in 2019 survey (Next 12 months) a couple of years. Considering the growth predictions for the region, 11% 75% 14% which are promising, foreign corporations will also be more 2020 survey (Next 12 months) interested in investing.” – Partner, US-based PE/VC firm 29% 20% 23% 29% “Once the travel restrictions 46% 41% 10% are relaxed, we can expect 2020 survey (Next 24 months) more investments from foreign 51% 23% 20% corporations and PE firms. New Zealand is an attractive 3% 3% destination, because of the economic stability. The value Increase signiﬁcantly Increase moderately No change generation capacities of targets Decrease moderately Decrease signiﬁcantly are higher in comparison to other regions.” – Director Corporate Development, Canadian corporation

Figure 6. What do you expect to happen in terms of M&A activity from “Foreign PE/VC firms will compete the following investor groups in the next 12 months? in bidding for private targets. There is more clarity when New Zealand corpora�ons investing in the region, because 11% 31% 29% 29% they have controlled the Covid-19 situation well.” New Zealand PE/VC firms – Managing Partner, Australian PE/VC firm 14% 46% 26% 11% 3% “A moderate increase in investments Foreign corpora�ons (MNCs) will be seen from foreign entities. Since Chinese markets will no longer 23% 9% 26% 40% be favoured due to the geopolitical 3% issues and potential regulatory Foreign PE/VC firms threats, investments in New Zealand 23% 23% 9% 37% 9% will increase over a period of time.” – CFO, US-based corporation Increase significantly Increase moderately No change

Decrease moderately Decrease signiﬁcantly

11 Section 3: Re-opened border will accelerate New Zealand’s M&A market

Border restrictions limit offshore investors’ ability to close deals. Safely re-opening borders should significantly increase M&A activity.

Closed borders holding back deals reliance on dealing remotely and on respondents indicated this is a local advisers to assist with that. We “bridge too far”. Respondents were asked to identify think this will continue to be the case the top challenges facing investors The exception may be Australian for some time, even after borders into NZ over the next 12 months. The funds already active in NZ. With start to re-open. top three were: existing knowledge of the economy and relationships with local advisers, • Market size/expansion limitations 100% remote dealing a “bridge too far” they may be willing to take that step • Reliance on local advisers/closing in order to get the investment. Remote dealing and input from local deals remotely advisers only go so far. Investors “Companies cannot depend on the • Remoteness/lack of familiarity still want to come to NZ so they advisers completely. At some point, with target markets and advisers can kick the tyres and close deals they will need physical site visits personally. This option remains out to assess the performance level of These responses all reflect the of reach until borders are re-opened targets. The financial assessments obvious point that NZ is a small and to foreign travellers, forcing offshore can be conducted off-site, but social geographically remote country. investors to take on increased risk, and environment due diligence will Exploring NZ-based targets, and deal timelines and costs. Many be challenging.” getting deals done, requires greater – Partner, Malaysian PE/VC firm

Figure 7. What impact would any of the following hypothetical scenarios have on your likelihood to invest in NZ? (Select one for each statement)

Sustained outbreaks of Covid-19 community/local transmission in New Zealand 20% 29% 9% % Relaxa�on of New Zealand’s Overseas Investment regime requirements and/or improved �meframes for approvals 6% % % 17% 9%

A full re-opening of New Zealand’s travel borders – with arrival quaran�ne measures in place 29% 6% 17% 9%

A par�al re-opening of New Zealand’s travel borders – including a ‘travel bubble’ with Australia – with arrival quaran�ne measures in place 1% 6% 0%

Travel exemp�ons to allow prospec�ve high-value oﬀshore investors to visit New Zealand targets and meet with local advisers (a�er a 14-day quaran�ne period) 1% % 1%

Increase signiﬁcantly Increase moderately No change Decrease moderately Decrease signiﬁcantly

12 Expanding Horizons 2020: Offshore perspectives on investment into New Zealand during the Covid-19 recovery Opening the border will re-start between the two countries without a When asked about a scenario where M&A flow quarantine period on arrival) would travel exemptions could be granted make them more likely to invest. to high-value offshore investors to Safely re-opening the border 75% say a full re-opening of the visit NZ targets/local advisers (after should significantly increase NZ’s borders (with quarantine measures a 14-day quarantine period), 48% of M&A activity. on arrival) would likewise entice respondents said it would increase Most respondents say that them to invest. their likelihood to invest. safely re-opening the border, or Relaxation of NZ’s overseas “Innovative steps such as a travel establishing travel bubbles, would investment regime and/or improved bubble would be helpful in make a significant difference in their timeframes for approvals would only recognising new opportunities. intention to invest – even more so increase likelihood to invest for 40% The reliance on local advisers than a relaxation of NZ’s overseas of respondents, with 26% saying can be reduced significantly if investment regulatory requirements. it would actually decrease their the borders are re-opened, with 60% of respondents say a partial likelihood to invest here. protective measures.” re-opening (including a travel bubble – Managing director, US-based with Australia – allowing free travel PE/VC fund

“The Covid-19 situation is being controlled well by the New Zealand authorities. If they re-open the travel borders partially, with quarantine and Covid-19 checks upon arrival, it would increase the likelihood of us investing.” Managing Director, US-based PE/VC firm

13 Section 4: Tech, consumer and pharma sectors lead the way

Strong interest in technology and dairy sectors continues but support growing for pharma, medical and biotech.

TMT and consumer still lead but in pharma, biotech and medical, “I think there are good investment other opportunities arise and fintech. opportunities in the technology sector. The employees are The pandemic has opened up 71% of respondents see TMT as one knowledgeable and there has been opportunities for investors of the most attractive sectors over steady progress in developing to capitalise in strategic sectors. the next 12-24 months. innovative technologies for various When compared to our 2019 51% of respondents also see NZ’s sector applications. Technology survey feedback, we see that consumer sector as a top drawcard. usage in agriculture and the investor interest is still strong The country is seen as a desirable consumer sector has been notable.” in NZ’s technology, media and premium food producer and we – Partner, US based PE/VC firm telecommunications (TMT) and think that accounts for much of consumer sectors, but now also this perception.

Figure 8. Which of the following sectors do you think will be most attractive over the next 12-24 months? Which will be most challenging to invest in?

Most a�rac�ve Most challenging

71% TMT 0% Pharma, medical 60% and biotech 0% 1% Consumer 0% Financial services 1% (including ﬁntech) 2% 29% Business services 0% Industrials and 26% chemicals 0% Agriculture 20% (including agritech) 11% Energy, mining 6% and u�li�es 0% % Leisure and tourism 1% % Real estate % 0% Transporta�on 17% 0% Government 29% 0% Defence 1% 0% Construc�on %

14 Expanding Horizons 2020: Offshore perspectives on investment into New Zealand during the Covid-19 recovery Covid-19 raises the appeal of “New Zealand is a good market for “Pharma and biotech companies pharma, medical and biotech pharma and tech investments. will be more involved in the 60% of respondents identified Despite the Covid-19 pandemic, the process of drug development pharma, medical and biotech companies have been resilient. The and manufacturing of Covid-19 as attractive opportunities for productivity has been maintained, medication. They will be active investment, driven by an increased with efforts towards stable growth.” despite the financial crisis.” focus on health and medical products – Partner, UK-based PE/VC firm – Managing director, Australian due to the Covid-19 pandemic. NZ PE/VC firm also has domestic pharmaceutical manufacturing capacity, which offers investors a good opportunity to provide scalable production capacity in the region.

“Consumer and agriculture opportunities will increase in the next 12-24 months. There is demand for organic product development and manufacturing units. Companies in Asia and Europe will be keen on partnering with potential targets in New Zealand.” Head of M&A, Belgian corporation

15 Section 5: Overseas investment regime working, but still room for reform

Investors understand the realities of overseas investment regulation and are comfortable with current settings, but some are concerned about regulatory creep.

Most investors consider NZ “New Zealand’s FDI policies are “When it comes to foreign Government positive towards supportive because they have had investments, the deal terms and foreign investment a positive impact on the volume of values are scrutinised strictly. deals and the value of deals in the Regulators are fair with their Generally, respondents are positive region. The average value of deals opinion, but the delays create about the NZ Government’s support has improved in the recent past inevitable financial pressure for foreign investment. due to the support.” on investors.” (Note – this survey was conducted – Director of Strategy, – Head of Strategy, before the results of NZ’s 2020 Swedish corporation Swiss corporation election were known). 54% say the Government is very or moderately supportive (compared Figure 9. How supportive do you think NZ Government policies are toward to 45% in 2019), and only 14% say foreign investment at present? the Government is unsupportive (compared to 22% in 2019). 2019 survey Only 23% of respondents say delays 5% 40% 33% 21% in Government approval for foreign 1% investment presented a challenge, 2020 survey and far fewer (9%) cite regulatory 34% 20% 31% 14% change as an issue. Very suppor�ve Moderately suppor�ve Neutral Moderately unsuppor�ve Very unsuppor�ve

16 Expanding Horizons 2020: Offshore perspectives on investment into New Zealand during the Covid-19 recovery Investor fears unfounded? contrary to NZ’s “national interest” – Further reform of overseas powers which the regulator has said Several respondents specifically investment regime it intends to use “rarely”. expressed concern about the new The reforms required to implement compulsory transaction notification All transaction notifications Simpson the remaining proposed changes regime. Introduced in June 2020, Grierson has been involved with have (particularly those concerning the notification regime is applicable proceeded without condition, and timetabling, and streamlining the to a broad range of investments turnarounds have been within the consenting process) have been by “overseas persons” in NZ assets stated timeframes (10 business days held up due to the Government’s (irrespective of deal value). from notification). focus on Covid-19 and the economic recovery. We expect the However, the notification regime The OIO reported in August 2020 remaining reforms to feature in does not give the Overseas that of the 102 notifications received the Government’s 2021 agenda. Investment Office (OIO) power to since the notification regime was change deal terms randomly or at introduced, only three were referred will. Powers in relation to notified for further assessment (two were transactions are limited to applying allowed to proceed and one is still conditions to transactions considered being assessed).

Understanding NZ’s overseas investment regime Overseas investments in Other overseas investments must Transactions contrary to the “sensitive” assets need consent be notified national interest An “overseas person” seeking to Certain other overseas investments, Consent for a notified acquire either “sensitive land” or regardless of value, must be transaction will be refused, or “sensitive business assets” must notified to the OIO who then made subject to conditions, if have OIO consent before the assess the transaction in relation the transaction is considered investment can proceed. to the “national interest”. The contrary to the national interest. requirement is triggered if the The investor must submit an The test is largely discretionary proposed investment: application which focuses on but certain factors are deemed whether the overseas person has • results in an ownership or relevant to that discretion, relevant business experience, is control interest of more than including whether the target financially committed and is of 25%, 50% or 75% of any entity business is ‘strategically good character. If the application that controls (directly or important’, or if the investor is concerns sensitive land, the indirectly) NZ assets; or owned or controlled by a foreign applicant must also demonstrate • involves an acquisition of NZ government. Strategically that the investment will bring a assets representing more important businesses include net benefit to NZ. than 25% of the value of the those involved in ports or vendor’s assets. airports, power generation, Processing time depends on the water infrastructure, nature of the application, taking Most transactions will be cleared telecommunications, financial up to nine months for certain (and within the stated timeframe market infrastructure, or land transactions. Prescribed of 10 business days) but those media businesses with a (shorter) statutory timeframes considered to represent higher significant impact. for processing of applications are risk to the national interest can be expected during 2021. subject to a conditional direction order, or even prohibited.

17 Conclusion: Looking ahead

Several reasons to be cautiously optimistic about the future of NZ M&A as offshore sentiment remains positive, despite investors maintaining a holding pattern for now.

Reasons for optimism With so much uncertainty still in play, it’s no surprise that offshore investors are telling us that deals will be subdued for at least the next 12 months, with some on hold indefinitely. However, it’s encouraging to see positive sentiment and cautious optimism from many respondents, with 60% intending to invest here in the next two years and 20% saying the pandemic has actually increased their likelihood of investing in NZ (likely due to reduced competition and fewer buyers). Despite the challenges, investors believe NZ’s investment fundamentals remain strong and they are still seeing good opportunities in our market – especially in the TMT, consumer, and pharma, biotech and medical sectors.

Re-opening the borders is key Key to re-starting M&A activity on a larger scale will be the safe re-opening of NZ’s borders, with 75% of respondents telling us they would increase investments into NZ as a result. While such a move could be months (or years) away, 60% of respondents say a travel bubble/partial re-opening of the borders (most likely between NZ and Australia initially) would also make them more likely to increase investments here. Safely re-opening NZ’s borders, fully or partially, and attracting international investment to stimulate the country’s economic recovery should certainly be high on the Government’s agenda. Most respondents generally approved of NZ’s current regulatory settings towards overseas investment. However, some did point out areas for improvement – especially around streamlining the application/approval process. We expect these concerns to be addressed as part of ongoing reforms that are likely to feature in the Government’s agenda for 2021.

Stability and certainty required When asked what other factors, besides border re-opening, would make the biggest difference to entice further investment into NZ in the near term, respondents wanted the Government to avoid unexpected policy changes post-election (Oct 2020) saying consistency/predictability will keep their investment plans on course.

Local PE’s time to shine Ultimately, the survey feedback tells us that we are not alone in being hopeful about NZ’s economic equilibrium returning soon. However, until borders re-open it will be PE/VC investors driving NZ’s M&A activity, with NZ based funds leading the way and taking advantage of reduced competition.

18 Expanding Horizons 2020: Offshore perspectives on investment into New Zealand during the Covid-19 recovery Contacts

Andrew Matthews Partner We are one of New Zealand’s largest law firms, but that’s not what sets us apart. +64 9 977 5402 [email protected] It’s our team of experts, market-leading reputation, and absolute commitment to achieving the right outcome for each client that makes us different. Charlotte McLoughlin Consultant By involving us early on, our clients and their advisers +64 9 977 5411 benefit from access to unsurpassed understanding of New [email protected] Zealand’s business and regulatory environments, plus insight into how local conditions are responding to Covid-19 recovery measures. Don Holborow Partner You’ll have the advantage of leading specialists delivering +64 4 924 3423 timely advice, solving problems and anticipating issues. [email protected] Having us in your corner means making decisions with confidence. Hugh Lindo Please contact any of our experts for advice on the Partner New Zealand market and investment opportunities, or to discuss any aspect of this report. +64 3 968 4010 [email protected]

James Hawes Partner +64 9 977 5448 [email protected] Mergermarket is an unparalleled, independent mergers & acquisitions (M&A) proprietary intelligence tool. Unlike any Michael Pollard other service of its kind, Mergermarket provides a complete Partner overview of the M&A market by offering both a forward- +64 9 977 5432 looking intelligence database and a historical deals database, [email protected] achieving real revenues for Mergermarket clients.

To find out more, please visit www.acuris.com Michael Sage Partner +64 9 977 5006 [email protected]

Robert McLean Partner +64 9 977 5077 [email protected]

Simon Vannini Partner +64 9 977 5186 [email protected]

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