Research Indicates a Continuing Increase in M&A Activity for 2006

London, May 5, 2006
New research reveals that 94% of European M&A professionals, investment bankers, lawyers and advisers are either fairly or very optimistic about the outlook for M&A activity this year. Furthermore, investment bankers are the most bullish with 40% predicting an increase of 20% or more indicating levels of $1.2 trillion. Corporates are also predicting a busy year with 68% seeing an increase on last year’s activity.

The inaugural M&A Monitor survey, conducted by ICM and commissioned by IntraLinks, the leading provider of On-Demand Workspaces ™, was completed during March 2006 amongst representatives of 259 European investment bankers, lawyers, advisers and corporates.

The research revealed that the factors behind this boom in M&A activity are strategic developments such as global expansion plans. The survey also found that cash surpluses at corporates were part of the drive towards M&A activity. It is certainly not a cheap opportunity to buy and pricing is less of a factor than in recent years, however there are regional differences. In Germany some 39% view pricing as a deal driver while just 13% of French M&A professionals see it as significant. The relative lack of cheap buying opportunities could make it more difficult for private equity investors.

Interestingly, 47% of investment bankers and 41% of corporates see Russia far ahead of both India and China, as the most active emerging market this year. Increasing interest from foreign buyers sent Russian M&A to record levels last year, jumping 65% to €42 billion.

Rob Fisher, Managing Director for EMEA and Asia, explains: “From the results of the research it seems that 2006 will be a strong year for M&A activity with high levels of optimism across the spectrum although lawyers are, characteristically, slightly more cautious. With this continuing increase in such activity, it is going to become increasingly important for companies to ensure that the rigorous due diligence process needed to be undertaken with any merger or acquisition is conducted quickly and securely. If the M&A process can be completed quicker then it leaves less time for market factors to disrupt the deal.”

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Since 1997, more than 450,000 users representing over 35,000 organisations worldwide have used IntraLinks On-Demand Workspaces™ to communicate and collaborate on thousands of projects and transactions. IntraLinks has been adopted widely in the financial services and pharmaceutical industries, where its clients include AstraZeneca Pharmaceuticals LP, Bank of America, Bear Stearns, Deutsche Bank, Ernst & Young, FDIC, TD Securities, Thomas Weisel Partners and WestLB, among hundreds of others. Founded in 1996, IntraLinks is headquartered in New York with offices in Boston and London.