RDP 2026-04: Tracking Mergers and Acquisitions Using Australian Administrative Data 6. Conclusion

Mergers and acquisition research in Australia has long been hampered by shortcomings in data availability. Previously available data sources have not had full financial details of the transacting parties, nor has it previously allowed linking with the employees in each of the firms.

In this paper we present a methodology to create a database using linked administrative data. Using clusters of worker flows between firms, movements of clusters firms between tax consolidated groups, and details of firms lodging forms related to takeovers and schemes of arrangement, we find around 1,500 mergers a year.

Using this new database we provide some valuable early insights into merger activity in Australia. We find that the likelihood of being an acquirer rises dramatically with size of the enterprise groups, and that very large firms have accounted for a large share of the increase in merger activity over the 2010s. Targets are most likely to be mid-sized, singleton firms with slightly higher profitability, slightly lower productivity, and a large number of patents. And serial acquisitions appear to be an important feature of the Australian M&A landscape, and are particularity prevalent in some high-profile industries like health and supermarkets.

This is the first step in a rich field of future research in Australia and will allow researchers to answer questions including: what happens to workers of firms that merge; what subsequent financial and investment performance of merged firms looks like; and whether managerial quality makes a difference. The set of research questions that can be explored will also expand as new datasets are integrated into the data sharing ecosystem.