Tech shifts, deal momentum and regulation: How SME owners can stay ahead in Australia
Australia’s business landscape is moving quickly. Google has increased its lobbying presence in Canberra, hiring Labor-aligned advisors as reforms targeting digital competition, social media and news bargaining progress. For global tech giants, this is a defensive step. For Australian businesses, it signals a new era where regulation can influence valuations as much as revenue.
Dealmaking is still active. The MSA September 2025 Market Update notes that mid-market M&A remains resilient despite tighter capital conditions. CVC acquired a major stake in Australian Venue Co for $945m, Emeco is exploring mergers, and education provider ANZUK is weighing a sale after its New Zealand expansion. Globally, Nvidia faces antitrust scrutiny in China while pursuing a USD 6.3b cloud services deal, highlighting how growth and compliance are now closely linked.
Why this matters now
Policy is no longer just a concern for global technology companies. Canberra’s frameworks often set the standard for Asia-Pacific markets, influencing expectations around data, transparency and competition. These standards flow through to the mid-market as buyers apply the same scrutiny to SMEs. For founders preparing for sale, due diligence is more exacting and disclosure must be carefully managed.
The September 2025 MSA update also shows that although global private equity fundraising has dropped to seven-year lows, targeted capital continues to flow into quality assets. Investors are selective. In this environment, businesses with strong governance, reliable earnings and strategic clarity attract premiums, while others risk being left behind.
Where SME owners should focus
Policy shapes valuation
When regulators tighten digital and competition rules, the effects spread to service providers, advertisers and SaaS operators. Buyers build these risks into their models. Owners who anticipate regulatory changes, instead of reacting later, are better positioned to protect and grow value.
Capital is cautious but still active
Private equity and corporate investors are still committing funds, but with closer scrutiny of deal structures and execution risk. Clawback disputes and valuation disagreements, such as those seen with StrongRoom AI, reflect this tighter environment. For SMEs, well-prepared financials, clean compliance records and a professional data room are basic requirements.
Execution builds credibility
A valuation only becomes real when a buyer agrees and completes. Bridging the gap requires more than optimism. It calls for tailored marketing, clear disclosure and a negotiation plan that presents the business as an asset worth a premium. Business owners can strengthen their position by bridging the gap between owner expectations and market value and by focusing on targeted, well-prepared negotiations.
How MSA bridges the gap
At Morgan Shaw Advisory, our EBITDA+ SIX STEPS TO SUCCESS™ helps SME owners become “Game Ready” by focusing on:
Exit gap analysis: understanding the difference between owner expectations and market value
Strategic readiness: building regulatory and industry shifts into the business plan
Information hygiene: preparing professional data rooms that withstand increased scrutiny
Value storytelling: going beyond financials to highlight resilience, governance and growth potential
This process ensures businesses are presented as both attractive and defensible in a competitive market.
Practical steps for SME owners
Review how Canberra’s competition and digital reforms could affect your sector
Test your valuation under different capital and compliance scenarios
Start preparing a full data room before engaging buyers
Build a value story that covers governance, customer loyalty and scalability, not just profits
Consider alternatives such as selling to a competitor or structuring earnouts in Australian M&A to close valuation gaps
Learn what it takes for building a sellable business in today’s market
Technology, capital and policy are redefining how businesses are valued in Australia. For SME owners, the choice is whether to react later or prepare now. Early preparation and clear positioning can mean the difference between a discounted deal and a premium outcome.
Morgan Shaw Advisory helps business owners bridge the gap between ambition and execution. Explore our latest market insights at morganshawadvisory.com/resources and see how we can prepare your business to be “Game Ready.”