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Is the unstable geopolitical environment effecting valuations and deal-doing in Australia?

I have been asked this question by owners quite a lot recently.

The short answer is not yet, or at least not directly.

Strong appetite from buyers remains for those businesses with enduring futures.

Stopping the collapsing domino

However, businesses affected by the continuing supply-line and logistics constraints, as well as price hikes, that cannot be passed-on to customers, will struggle to support valuations –  unless management have logically mapped-out a clear pathway to the other side.
And, can evidence that. 
A first for Oasis Partners:

A buyer recently inserted a clause into a Terms Sheet which sought the right to withdraw from the transaction, in the event that the OECD countries imposed sanctions on China.

This speaks to the heightened risks, which ultimately drives sentiment.

Let’s hope sanity returns and the tragedy unfolding in Ukraine ends quickly.                 

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